Regulation Correspondent, Europe
Huw's Feed
Nov 28, 2014

ECB’s Nouy says banks must show they can make profits

LONDON (Reuters) – Euro zone banks that failed or barely passed this year’s health checks will have to demonstrate they can make sustainable profits and may need to sell off loss-making units, the European Central Bank’s top supervisor said.

Daniele Nouy told Reuters on Friday that simply finding more capital to plug shortfalls uncovered by the stress test may not be enough.

Nov 27, 2014

New rules, low rates push European companies into risky investments

LONDON (Reuters) – European firms squeezed by low interest rates are having to consider new, riskier ways to manage trillions in corporate cash as they are snubbed by banks awash in new regulation that may also spell the demise of their go-to investment funds.

In order to protect and grow their companies’ money and ensure it is easily accessible to pay wages, invoices and dividends, treasurers are being forced to look at less secure assets and deal with some of them directly.

Nov 27, 2014

European plea on bank capital to fall on deaf ears – sources

LONDON, Nov 27 (Reuters) – Global regulators meeting next
week will not heed European calls to ease bank capital charges
to help finance the region’s flagging economy, sources close to
the situation said, a stance that could prompt the EU to take
unilateral action.

The Basel Committee of banking supervisors from nearly 30
countries will finalise new rules for securitisation, or bonds
backed by assets like mortgages.

Nov 27, 2014

BDO concerned over patchy roll-out of EU accounting rules

LONDON (Reuters) – New European Union rules to improve auditing of banks and other companies are being blunted by varied implementation from nation to nation, a top accounting official said.

The reform forces companies to switch auditor every few years so that accountants are more likely to challenge what they are told before signing off on annual reports.

Nov 26, 2014

UK plans to make insurance executives more accountable

LONDON, Nov 26 (Reuters) – Chief executives and other senior
officials at insurance companies in Britain will be made more
directly accountable to regulators for their decisions under
plans announced by the Bank of England on Wednesday.

The plans follow those the Bank’s Prudential Regulation
Authority (PRA) has already drawn up for senior bankers,
although they are less demanding in some respects.

Nov 26, 2014

EU markets watchdog reviewing “falsely active funds”

LONDON, Nov 26 (Reuters) – The European Union’s markets
watchdog said on Wednesday it was assessing the extent to which
some actively-managed funds potentially mislead investors by
simply tracking a stock index.

Since the financial crisis, regulators around the world have
intervened in various financial markets to ensure that investors
get a better deal, fining firms for bad practice and changing
the rule-book.

Nov 26, 2014

Bank of England plans accountability regime for insurers

LONDON, Nov 26 (Reuters) – Chief executives and other senior
officials at insurance companies in Britain will be made
directly accountable for the decisions they take under plans
announced by the Bank of England on Wednesday.

The plans are similar to those the Bank’s Prudential
Regulation Authority arm has already proposed for senior
bankers. Lawmakers criticised regulators for bringing so few
bankers to book after lenders had to be shored up by taxpayers
in the 2007-09 financial crisis.

Nov 25, 2014

Global regulators seek ways to avert rule disputes

LONDON (Reuters) – Global regulators want better coordination of rules but not a body to settle disputes like the transatlantic spat over derivatives, a financial watchdog report said on Tuesday.

The International Organisation of Securities Commissions (IOSCO) said its report, based on a survey of regulators and banks, was a first attempt at a broad framework for dealing with differing approaches to cross-border regulation.

Nov 25, 2014

FCA homes in on ‘survival borrowing’ in credit card probe

LONDON (Reuters) – Britain’s credit card market is not working well for struggling customers who over-borrow and pay unexpectedly high rates, the country’s financial regulator said on Tuesday, as it launched a study that could change the way cards are sold.

The Financial Conduct Authority (FCA) said it would study how easy it is for customers in Europe’s biggest credit card market to shop around, how card providers recover costs, and the extent of unaffordable debt.

Nov 25, 2014

Watchdog homes in on ‘survival borrowing’ in credit card probe

LONDON (Reuters) – Britain’s credit card market is not working well for struggling customers who over-borrow and pay unexpectedly high rates, the country’s financial regulator said on Tuesday, as it launched a study that could change the way cards are sold.

The Financial Conduct Authority (FCA) said it would study how easy it is for customers in Europe’s biggest credit card market to shop around, how card providers recover costs, and the extent of unaffordable debt.

    • 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."
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