Regulation Correspondent, Europe
Huw's Feed
Jul 31, 2014

UK watchdog says brokers fail to give customers best deals

LONDON, July 31 (Reuters) – Banks and brokers are failing to
give the best trading deals to customers and could face
enforcement action, Britain’s Financial Conduct Authority (FCA)
said in a review on Thursday.

The FCA checked whether 32 banks, brokers, wealth managers
and interdealer brokers had complied with a European Union law
that requires them to take all reasonable steps to get the best
possible deal when executing orders on behalf of customers.

Jul 31, 2014

Oil explorer Afren suspends CEO, COO pending investigation

LONDON, July 31 (Reuters) – London-listed oil explorer Afren
Plc said its board had temporarily suspended Chief
Executive Osman Shahenshah and Chief Operating Officer Shahid
Ullah pending an investigation into payments, sending its shares
to their lowest level in more than two years.

The Nigeria-focused company said in a statement on the
London Stock Exchange’s company news service that a review for
the board found evidence of “the receipt of unauthorised
payments potentially for the benefit of the CEO and COO”.

Jul 30, 2014

BoE says banker bonuses can be clawed back for up to seven years

LONDON, July 30 (Reuters) – Bankers who break rules on their
conduct may have to hand back bonuses up to seven years after
being awarded them, the Bank of England said on Wednesday as it
unveiled some of the world’s toughest curbs on the sector.

The measures are the latest response to multi-billion pound
taxpayer bailouts of lenders such as Royal Bank of Scotland
and Lloyds in the financial crisis of 2008 and
2009, with few individual bankers subsequently punished for
reckless behaviour.

Jul 29, 2014

BoE to increase oversight of bankers and their bonuses

LONDON, July 29 (Reuters) – Top bankers in Britain will
become directly accountable for their actions under proposals
from regulators on Wednesday, with those behaving recklessly
facing a spell in jail.

The Bank of England will also publish final rules on clawing
back bonuses paid to bankers caught up in misconduct, and
consult on closer scrutiny of how awards are made.

Jul 28, 2014

Lloyds not off hook yet after $370 million Libor fines

LONDON (Reuters) – Lloyds Banking Group could face further punishment after agreeing to pay fines totalling $370 million (217.80 million pounds) for its part in a global interest rate rigging scandal and for attempting to manipulate fees for a government lending scheme to help banks.

The settlement is the seventh joint penalty handed out by American and British regulators in connection with the attempted manipulation of the London interbank offered rate, or Libor, and other similar benchmarks used to price around $450 trillion of financial products worldwide.

Jul 28, 2014

Lloyds Bank fined $370 million for rigging Libor interest rates

LONDON/WASHINGTON (Reuters) – Britain’s Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz) has agreed to pay fines totaling $370 million to U.S. and British authorities investigating its part in a global interest rate rigging scandal and manipulating fees for a UK government lending scheme.

The settlement is the seventh joint penalty handed out by American and British regulators in connection with the attempted manipulation of the London interbank offered rate, or Libor, and other similar benchmarks used to price around $450 trillion of financial products worldwide. The misconduct related to Libor rates for sterling, the U.S. dollar and Japanese yen.

Jul 24, 2014

EU executive proposes 9-month delay to bank buffer plan

LONDON, July 24 (Reuters) – European Union rules forcing
banks to hold a buffer of cash and top quality debt to withstand
market shocks will be delayed by nine months, the bloc’s
executive body has proposed.

The so-called liquidity coverage ratio (LCR) is part of a
global deal known as Basel III to beef up banks’ resilience so
they do not have to rely on taxpayers again as they did in the
2007-09 financial crisis.

Jul 24, 2014

Bank of England hints at size of new bond buffer for big banks

LONDON, July 24 (Reuters) – Britain’s biggest banks, such as
Barclays and HSBC, will need to build up a
buffer of loss-absorbing bonds at least as big as the capital
they already hold to cushion against shocks, according to a
senior Bank of England official.

These bonds could be used if a bank went bust to provide
cash to help keep key parts of the bank afloat while it is
restructured.

Jul 24, 2014

Banks to provision earlier on bad loans under new global rule

LONDON, July 23 (Reuters) – Banks must provision for souring
loans much earlier under an international rule published on
Thursday that will take effect in 2018, a decade after a global
financial crisis the accounting reform seeks to stop recurring.

The collapse of Lehman Bros in 2008 highlighted how little
capital banks held to cover a slump in the value of the assets
on their books, forcing the public to bail out many lenders.

Jul 22, 2014

G20 watchdog orders Libor alternatives by 2016 in benchmark reform

LONDON, July 22 (Reuters) – Global regulators will implement
a twin-track approach to ensuring interest rate benchmarks are
less prone to manipulation, recommending safeguards to the
current system as well as developing alternatives.

Ten banks and brokerages including Barclays and UBS
have paid a total of around $6 billion to date to
settle U.S. and European regulatory allegations that they
manipulated the London Interbank Offered Rate, or Libor, a
benchmark against which around $450 trillion of financial
products from derivatives to home loans are priced worldwide.

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
    • Follow Huw