Regulation Correspondent, Europe
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Aug 6, 2014

ICAP, MTS offer benchmark euro zone repo index

LONDON, Aug 6 (Reuters) – Interdealer broker ICAP
and fixed income electronic trading platform MTS have introduced
a daily benchmark index to track borrowing costs in the euro
zone repo market, a major source of secured short-term funding
in the region.

The move is part of ICAP’s broader push into benchmarks by
tapping its pool of market data as the world’s biggest broker of
transactions between banks.

Aug 6, 2014

UK financial watchdog proposes rules for social media adverts

LONDON, Aug 6 (Reuters) – Companies are failing to include
risk warnings in financial promotions sent to millions of
customers on social media like Twitter, Britain’s markets
watchdog said as it proposed rules to clamp down on this
practice.

The Financial Conduct Authority (FCA) on Wednesday launched
a public consultation on its approach to supervising financial
promotions on social media, which it said was in response to
calls for guidance from the industry.

Aug 5, 2014

UK watchdog bans sale of bank CoCo bonds to mass retail market

LONDON, Aug 5 (Reuters) – Britain’s banks are banned from
offering risky and complex hybrid debt known as contingent
convertible bonds or CoCos to the mass market from October, the
country’s Financial Conduct Authority (FCA) said on Tuesday.

Faced with pressure from regulators to bolster their capital
cushions, banks are set to issue CoCo bonds in ever larger
amounts to shield taxpayers from having to rescue failing
lenders like in the 2007-09 financial crisis.

Jul 31, 2014

UK watchdog says brokers fail to give customers best deals

LONDON, July 31 (Reuters) – Banks and brokers are failing to
give the best trading deals to customers and could face
enforcement action, Britain’s Financial Conduct Authority (FCA)
said in a review on Thursday.

The FCA checked whether 32 banks, brokers, wealth managers
and interdealer brokers had complied with a European Union law
that requires them to take all reasonable steps to get the best
possible deal when executing orders on behalf of customers.

Jul 31, 2014

Oil explorer Afren suspends CEO, COO pending investigation

LONDON, July 31 (Reuters) – London-listed oil explorer Afren
Plc said its board had temporarily suspended Chief
Executive Osman Shahenshah and Chief Operating Officer Shahid
Ullah pending an investigation into payments, sending its shares
to their lowest level in more than two years.

The Nigeria-focused company said in a statement on the
London Stock Exchange’s company news service that a review for
the board found evidence of “the receipt of unauthorised
payments potentially for the benefit of the CEO and COO”.

Jul 30, 2014

BoE says banker bonuses can be clawed back for up to seven years

LONDON, July 30 (Reuters) – Bankers who break rules on their
conduct may have to hand back bonuses up to seven years after
being awarded them, the Bank of England said on Wednesday as it
unveiled some of the world’s toughest curbs on the sector.

The measures are the latest response to multi-billion pound
taxpayer bailouts of lenders such as Royal Bank of Scotland
and Lloyds in the financial crisis of 2008 and
2009, with few individual bankers subsequently punished for
reckless behaviour.

Jul 29, 2014

BoE to increase oversight of bankers and their bonuses

LONDON, July 29 (Reuters) – Top bankers in Britain will
become directly accountable for their actions under proposals
from regulators on Wednesday, with those behaving recklessly
facing a spell in jail.

The Bank of England will also publish final rules on clawing
back bonuses paid to bankers caught up in misconduct, and
consult on closer scrutiny of how awards are made.

Jul 28, 2014

Lloyds not off hook yet after $370 million Libor fines

LONDON (Reuters) – Lloyds Banking Group could face further punishment after agreeing to pay fines totalling $370 million (217.80 million pounds) for its part in a global interest rate rigging scandal and for attempting to manipulate fees for a government lending scheme to help banks.

The settlement is the seventh joint penalty handed out by American and British regulators in connection with the attempted manipulation of the London interbank offered rate, or Libor, and other similar benchmarks used to price around $450 trillion of financial products worldwide.

Jul 28, 2014

Lloyds Bank fined $370 million for rigging Libor interest rates

LONDON/WASHINGTON (Reuters) – Britain’s Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz) has agreed to pay fines totaling $370 million to U.S. and British authorities investigating its part in a global interest rate rigging scandal and manipulating fees for a UK government lending scheme.

The settlement is the seventh joint penalty handed out by American and British regulators in connection with the attempted manipulation of the London interbank offered rate, or Libor, and other similar benchmarks used to price around $450 trillion of financial products worldwide. The misconduct related to Libor rates for sterling, the U.S. dollar and Japanese yen.

Jul 24, 2014

EU executive proposes 9-month delay to bank buffer plan

LONDON, July 24 (Reuters) – European Union rules forcing
banks to hold a buffer of cash and top quality debt to withstand
market shocks will be delayed by nine months, the bloc’s
executive body has proposed.

The so-called liquidity coverage ratio (LCR) is part of a
global deal known as Basel III to beef up banks’ resilience so
they do not have to rely on taxpayers again as they did in the
2007-09 financial crisis.

    • 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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