Regulation Correspondent, Europe
Huw's Feed
May 16, 2013

Global accountants stick to plan to get leases on balance sheets

LONDON/NEW YORK, May 16 (Reuters) – Company balance sheets
could swell by trillions of dollars under an international plan
being pursued by two accounting bodies to show more clearly the
cost of leasing everything from photocopiers to property.

If the revised draft the International Accounting Standards
Board and U.S. Financial Accounting Standards Board issued on
Thursday is adopted, tens of thousands of firms worldwide will
have to add all leases over a year to their balance sheets.

May 15, 2013

Regulators set September deadline for derivatives deal

LONDON, May 15 (Reuters) – Financial regulators have given
themselves until September to try to resolve differences over
how to supervise derivatives markets in the wake of the
financial crisis, a U.S. watchdog said on Wednesday.

Leaders of the Group of 20 economies (G20) pledged in 2009
to make off-exchange traded derivatives like credit default
swaps more transparent. They wanted rules in place by the end of
2012, but this has proved difficult to achieve.

May 13, 2013

Major market operators to build cash pool for derivatives trades

LONDON, May 13 (Reuters) – Two of the world’s biggest market
infrastructure companies are joining forces to help banks track
down enough cash to underpin their derivatives trades, spurred
by new regulation that aims to make safe a traditionally risky
area of business.

Brussels-based Euroclear and the Depository Trust & Clearing
Corp (DTCC) of New York have agreed to build a new platform to
combine available collateral into a single pool.

May 2, 2013

Lease accounting fight tests resolve of global standard setters

NEW YORK/LONDON, May 2 (Reuters) – Corporations may have to
shoulder trillions of dollars of new balance-sheet liabilities
under an accounting change for leases that is meeting stiff
resistance from businesses in a test of international accounting
standard-setters’ resolve.

Already pared back once to reduce its impact on real estate
leasing, a proposed new international lease accounting standard,
under development for years, will reach a turning point in May
when standard setters unveil a detailed draft rule.

May 1, 2013

FCA steps in early over interest-only mortgage time-bomb

LONDON (Reuters) – The Financial Conduct Authority (FCA) has asked mortgage lenders to check if customers can pay back the loans, stepping in early to head off possible defaults in a sector the government sees as key to reviving growth.

The FCA said the capital on 2.6 million interest-only home loans will be due for repayment over the next 30 years, with 10 percent of those having no strategy for paying back the money.

May 1, 2013

UK watchdog steps in early over interest-only mortgage time-bomb

LONDON, May 2 (Reuters) – Britain’s market watchdog has
asked mortgage lenders to check if customers can pay back the
loans, stepping in early to head off possible defaults in a
sector the government sees as key to reviving growth.

The Financial Conduct Authority (FCA) said the capital on
2.6 million interest-only home loans will be due for repayment
over the next 30 years, with 10 percent of those having no
strategy for paying back the money.

Apr 29, 2013

UK to risk EU court challenge over tougher insurance rules

LONDON, April 30 (Reuters) – Britain intends to implement a
tougher version of European Union rules on capital adequacy for
its own insurers, even at the risk of a legal challenge in the
bloc’s courts, a top regulator has said.

Andrew Bailey, chief executive of Britain’s Prudential
Regulation Authority (PRA), said EU rules known as Solvency II,
due to come into effect in 2016 at the earliest, would not be
comprehensive enough.

Apr 25, 2013

EU lawmakers water down accountancy reform

LONDON (Reuters) – European Union plans forcing companies to change accountants regularly were watered down on Thursday, providing some relief for the “Big Four” auditors that check most large company books.

A panel from the European Parliament backed allowing companies to keep the same accountant for up to 25 years in a move also being considered by U.S. regulators.

Apr 25, 2013

IMF, ECB square off in Europe austerity debate

LONDON (Reuters) – A heated debate about Europe’s austerity drive flared back into life on Thursday with leading IMF and European Central Bank officials sharply at odds and Angela Merkel declaring that Germany required higher interest rates.

With the threat of the currency bloc’s break-up receding, some euro zone officials are saying now is the time to throttle back on debt-cutting drives because calmer financial markets will not react badly.

Apr 24, 2013

EU lawmakers in tentative deal on accounting cap -sources

LONDON, April 24 (Reuters) – Companies would have to change
their accountant every 25 years under a tentative deal ahead of
Thursday’s committee vote on a European Union audit market
reform, two parliamentary sources involved in the talks said on
Wednesday.

If endorsed, it would mark a big dilution in the draft EU
law and trigger relief among the “Big Four” accounting firms -
Deloitte, Ernst & Young LLP, PwC
and KPMG – who check the books of nearly all blue chip
companies 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."
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