Regulation Correspondent, Europe
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May 15, 2015

Rules alone won’t halt market wrongdoing: BoE’s Bailey

LONDON (Reuters) – Changing rules and codes of conduct will not address the cultural problems in banks’ trading arms laid bare by seven years of investigations into market-rigging, the Bank of England’s chief regulator said.

Andrew Bailey, head of the bank’s Prudential Regulation Authority, spoke to Reuters ahead of the publication next month of Britain’s Fair and Effective Markets Review, billed as potentially the last word on efforts to reform conduct at banks in the UK after four years of scandals and fines for market manipulation.

May 15, 2015

BoE says banks must comply with EU pay allowances rules

LONDON (Reuters) – British banks must rewrite contracts for senior staff to comply with new European Union rules banning top-up “allowances” that breach a cap on bonuses, the Bank of England (BoE) has said.

Banks have been giving key staff allowances on a monthly or quarterly basis to bump up their basic pay and soften the impact of the curb on bonuses – which can be no more than fixed pay or twice that amount with shareholder approval.

May 15, 2015

BoE says UK insurers will need more time to meet EU solvency rules

LONDON (Reuters) – Britain’s insurers will need more time to comply fully with new European Union capital rules that come into force next January, the Bank of England has said.

Andrew Bailey, who heads the BoE’s supervisory arm, the Prudential Regulation Authority (PRA), said implementing the Solvency II rules is his single biggest task this year.

May 14, 2015

What’s the worry for Europe’s bank regulators? Low interest rates

LONDON (Reuters) – Low interest rates that have forced investors to pile into riskier assets in the hunt for yield pose the biggest risk to financial stability at present, top banking regulators in Europe said at this week’s Reuters Regulation Summit.

Already historically low interest rates have been pressured further by the European Central Bank’s 1 trillion-euro ($1.1 trillion) bond buying spree.

May 13, 2015

New euro zone watchdog says banks must revamp IT systems

LONDON (Reuters) – Many euro zone banks must overhaul their technology to ensure they can be split up swiftly if they run into trouble – without disrupting customers, Europe’s newest banking watchdog said on Wednesday.

The Single Resolution Board (SRB) in Brussels was set up earlier this year to handle failing lenders after the European Central Bank took over supervision of Europe’s top 120 banks.

May 12, 2015

EU watchdog to turn up heat on banks over capital

LONDON (Reuters) – Banks will need to meet tougher capital rules early to restore public trust in the sector’s health, a top European Union regulator said on Tuesday.

Some banks in Europe have a stock market values less than the sum of their assets, seen as an indication by regulators of a lack of confidence in the capital buffers they hold.

May 11, 2015

EU watchdog says QE adding to liquidity headache

LONDON (Reuters) – The ECB’s trillion euro money printing program has put asset managers at the frontline of a possible liquidity crunch, though bringing in new rules to curb investment risk would be wrong for now, a top EU markets supervisor said on Monday.

The European Central Bank has begun a 19-month bond-buying spree, aimed at spurring the economy and helping to push yields in fixed income markets into negative territory in some cases.

May 11, 2015

Insurers must speed business model change -EU watchdog

FRANKFURT/LONDON, May 11 (Reuters) – Insurers must exercise
caution over dividends and speed changes to their business
models to meet tougher capital rules from January, the European
Union’s insurance watchdog said.

Record low interest rates are making it harder for insurers
to achieve adequate returns to pay policyholders, raising
questions over the sustainability of some companies in their
current form.

May 8, 2015

EU watchdog, bankers spar over new bonus rules

LONDON, May 8 (Reuters) – The European Union’s banking
watchdog called on lenders on Friday to back up their complaints
that a blanket application of the bloc’s bonus rules will harm
the single market.

The European Banking Authority (EBA) is updating guidance on
banker pay, such as when part of a bonus should be deferred or
what constitutes fixed and variable pay. It also reflects the
bloc’s new cap on bonuses of top earners.

May 7, 2015

EU lawmakers back rewards for long-term shareholders

LONDON, May 7 (Reuters) – Long-term shareholders in
companies in the European Union will be rewarded with extra
voting rights or loyalty dividends if a draft law backed by a
panel of EU lawmakers comes into force.

The 28-country bloc is revising its shareholder rights rules
to combat what critics call “short-termism” in stock markets
where investors hold shares for only brief periods, making them
less likely to hold company boards to account.

    • 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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