Regulation Correspondent, Europe
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Dec 13, 2013

Bankers get some breathing space over EU bonus cap

LONDON (Reuters) – Bankers in the European Union earning more than 500,000 euros a year may be excluded from a cap on their bonuses if they are not major risk takers, according to a revised rule from the EU’s banking watchdog on Friday.

Faced with public anger at banking excess, the EU approved a cap on bankers’ bonuses, limiting them to no more than their annual salary, or double that amount with shareholder approval. The cap will take effect on bonuses awarded for performance in 2014 and handed out in early 2015.

Dec 13, 2013

EU watchdog eases rule capping bankers’ bonuses

LONDON, Dec 13 (Reuters) – Bankers in the European Union
earning over 500,000 euros ($688,000) a year could be excluded
from a cap on their bonuses if they are not major risk takers,
according to a revised rule from the bloc’s banking watchdog on
Friday.

Faced with public anger at banking excess, the EU approved a
cap on bankers’ bonuses, limiting them to no more than fixed
annual salary, or double that amount with shareholder approval.

Dec 13, 2013

Banks will have to beef up capital buffers for fund investments

LONDON, Dec 13 (Reuters) – Banks will have to hold more
capital to cover investments in some “shadow banks”, such as
hedge funds and private equity, from January 2017, global
regulators said on Friday.

The new rule is part of wider efforts by the Group of 20
economies (G20) to contain risks in the $70 trillion shadow
banking sector, which was criticised for its opacity by
regulators during the 2007/09 financial crisis.

Dec 13, 2013

EU banking watchdog warns of risks from Bitcoin

LONDON (Reuters) – People using Bitcoins are on their own when it comes to losses, the European Union’s banking watchdog said on Friday in a formal warning to consumers on the risks of using unregulated online currencies.

The European Banking Authority said there was no protection or compensation for people whose “digital wallets” are hacked, a transfer of virtual money goes wrong or a platform is shut.

Dec 13, 2013

UK accounting body wants to lighten the load of boilerplate

LONDON, Dec 12 (Reuters) – Company reports will continue to
balloon with irrelevant disclosures unless regulators are
clearer on what can be left out, an international accounting
body said on Friday.

There has long been talk of cutting back on boilerplate
disclosures and on the need to make them relevant, but little
concrete action has been taken, the Institute of Chartered
Accountants in England and Wales (ICAEW) said in a report.

Dec 12, 2013

UK accounting watchdog to review bookkeeping at banks

LONDON, Dec 12 (Reuters) – Britain’s accounting watchdog
will begin reviewing bookkeeping at banks in the second quarter
of 2014 to find out why the lessons of the financial crisis are
being applied so slowly.

Several banks in Britain had to be shored up by taxpayers
during the 2007-09 crisis, prompting policymakers to ask why
auditors gave the lenders a clean bill of health beforehand.

Dec 11, 2013

Eleven EU states to consider narrower transaction tax

LONDON (Reuters) – The 11 European Union countries that have pledged to tax financial transactions will consider narrowing the levy’s scope to shield pensions, government debt and markets that help to grease the economy, an EU document shows.

The aim of the tax is to make banks pay for some of the taxpayer money they received during the 2007/09 financial crisis, but worries over unintended consequences have mounted among some of the countries taking part.

Dec 11, 2013

Watchdog fines Lloyds record 28 million pounds for pushing sales

LONDON (Reuters) – Britain’s financial watchdog imposed a record 28 million pound fine on Lloyds Banking Group for the way it encouraged staff to sell 2 billion pounds of products that customers did not need.

The probe covered the sale of products such as critical illness or income protection between January 2010 and March last year. During this time over a million products were sold to about 700,000 people.

Dec 11, 2013

FCA fines Lloyds record 28 million pounds for pushing sales

LONDON (Reuters) – Britain’s financial watchdog imposed a record 28 million pound fine on Lloyds Banking Group for the way it encouraged staff to sell 2 billion pounds of products that customers did not need.

The probe covered the sale of products such as critical illness or income protection between January 2010 and March last year. During this time over a million products were sold to about 700,000 people.

Dec 11, 2013

UK watchdog fines Lloyds record $46 million for pushing sales

LONDON (Reuters) – Britain’s financial watchdog imposed a record 28 million pound ($46 million) fine on Lloyds Banking Group for the way it encouraged staff to sell 2 billion pounds of products that customers did not need.

The probe covered the sale of products such as critical illness or income protection between January 2010 and March last year. During this time over a million products were sold to about 700,000 people.

    • 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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