Regulation Correspondent, Europe
Huw's Feed
Jan 21, 2015

Bank-style regulation offered as temporary fix for money market funds

LONDON (Reuters) – Bank-style regulation of money market funds (MMFs) has been proposed as a temporary compromise as draft European Union rules for the trillion euro ($1.2 trillion) sector face the prospect of being blocked for a second time by European lawmakers.

The rules proposed by the European Commission in Sept. 2013 aim to increase transparency and stability for MMFs, which are used by companies as an interest-earning cash deposit facility, but they have created deep splits among European Parliament members.

Jan 20, 2015

BoE’s Cunliffe cautiously welcomes EU capital markets plan

LONDON (Reuters) – The European Union’s plans to build a capital markets union (CMU) to increase funding for the economy will take years and needs careful handling, Bank of England Deputy Governor Jon Cunliffe said on Tuesday.

The CMU is the vehicle the EU’s executive European Commission hopes will increase market-based funding for companies and wean the 28-country bloc off its heavy reliance on banks.

Jan 20, 2015

Deep splits among EU lawmakers over shareholder rights reforms

LONDON, Jan 20 (Reuters) – European Union lawmakers are
deeply divided over plans aimed at encouraging more long-term
investment in the bloc’s companies, fuelling uncertainty about
what will be decided and when.

The European Commission has drafted revisions to the EU’s
shareholder rights law in a bid to promote a long-term approach
among investors that would put companies on a more stable
footing.

Jan 20, 2015

UK watchdog says consumers need help to switch cash accounts

LONDON, Jan 20 (Reuters) – Britons get poor value from many
cash savings accounts, finding it hard to switch to rival
providers, the Financial Conduct Authority said in a study on
Tuesday that however stopped short of banning some practices.

It should be made easier for consumers to compare and switch
between accounts in the 700 billion pound ($1 trillion) cash
savings market where just six providers hold roughly two-thirds
of all balances.

Jan 19, 2015

BoE says badly run banks face hefty capital surcharge

LONDON, Jan 19 (Reuters) – Badly run banks in Britain will
be forced to hold substantially more capital until they can show
that internal risks are under control, the Bank of England said
on Monday.

The BoE’s Prudential Regulation Authority (PRA) published a
consultation paper on how it will use powers to require lenders
to hold extra capital to cover risks that are not generally
covered by a bank’s minimum core buffer.

Jan 16, 2015

UK banks tell nine trade groups they should merge

LONDON (Reuters) – Banks told nine trade associations in Britain on Friday they should merge into a single body to strengthen lobbying in Europe and slash membership costs.

A working group of banks that includes HSBC, Barclays and Lloyds said in a consultation paper there are too many trade groups, leading to duplication of lobbying and a lack of strategic direction.

Jan 16, 2015

EU lawmaker wants workers’ say on bonuses in shareholder rights reforms

LONDON (Reuters) – Employees should have a say on their bosses bonuses and long-term investors should be rewarded with additional powers and benefits, a senior European Union lawmaker has proposed.

The 28-country bloc is revising its rules on shareholder rights to put pressure on companies to focus on long-term sustainable growth and not short-term gains to please markets.

Jan 15, 2015

UK company watchdog to study boards, investor advisers

LONDON, Jan 15 (Reuters) – Britain’s corporate governance
policeman will study whether boards are doing all they can to
improve business standards and if investors get the best advice
on voting at annual meetings.

The Financial Reporting Council (FRC) is acting after its
2014 review of how companies upheld the regulator’s corporate
governance code for boards, as well as the stewardship code for
asset managers and other investors, still found failings.

Jan 14, 2015

BoE’s Carney says IMF may help with stress test of UK lenders

LONDON (Reuters) – The International Monetary Fund (IMF) could play a role in this year’s health check of Britain’s banks to help to reinforce rigor in the exercise, Bank of England Governor Mark Carney told lawmakers on Wednesday.

The central bank published in December the results of its 2014 stress test into how leading lenders such as Barclays, HSBC and RBS fared in a theoretical housing market crash and a sharp rise in unemployment. Some lenders have to boost their capital buffers as a result of the test.

Jan 9, 2015

UK watchdog says trader found guilty of FX investment fraud

LONDON, Jan 9 (Reuters) – Alex Hope has been found guilty of
defrauding investors of five million pounds ($7.6 million) to
help fund his lifestyle, Britain’s market regulator said on
Friday.

The Financial Conduct Authority said Hope was found guilty
of fraud by Southwark Crown Court in central London on Friday.

    • 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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