Regulation Correspondent, Europe
Huw's Feed
Feb 28, 2013

EU watchdogs warns investors of risky derivatives

LONDON (Reuters) – European Union regulators warned investors on Thursday of the dangers of buying contracts for difference (CFDs), a type of derivative that offers potentially high returns.

CFDs are derivatives contracts that bet on price moves of an asset, such as a company’s shares, without having to own the underlying asset.

Feb 27, 2013

UK to cut capital requirements for new banks

LONDON, Feb 27 (Reuters) – New banks in Britain won’t have
to hold as much capital initially as established rivals in a
concession aimed at increasing choice in a market dominated by
four lenders, the Financial Services Authority said.

The watchdog’s chairman Adair Turner told a UK parliamentary
commission on banking standards the FSA will publish a document
in coming weeks on removing barriers to entering banking.
Barclays, Lloyds, RBS and HSBC
account for 80 percent of high street deposits.

Feb 27, 2013

It was impossible to spot Libor rigging: UK watchdog

LONDON (Reuters) – Regulators could not have spotted the “lowballing” of Libor interest rates during the financial crisis even if they had looked, Britain’s Financial Services Authority said.

The watchdog’s chairman, Adair Turner, told a parliamentary commission on banking standards on Wednesday it was much easier to see abuses in share trading by using computers.

Feb 27, 2013

It was impossible to spot Libor rigging – FSA

LONDON (Reuters) – Regulators could not have spotted the “lowballing” of Libor interest rates during the financial crisis even if they had looked, Britain’s Financial Services Authority said.

The watchdog’s chairman, Adair Turner, told a parliamentary commission on banking standards on Wednesday it was much easier to see abuses in share trading by using computers.

Feb 26, 2013

EU watchdog worried about how banks add up risks

LONDON (Reuters) – Regulatory action may be needed to end variations in the ways banks add up the risks on their books to determine how big their capital buffers should be, the European Banking Authority said.

As regulators put in place tougher capital requirements, known as Basel III, following the 2007-09 financial crisis they want to be sure calculations used by banks to meet them are sound.

Feb 25, 2013

U.S. offered seat on new global accounting panel

LONDON, Feb 25 (Reuters) – The United States has been
offered a seat on a new global accounting panel, in a move that
the body behind the initiative hopes will help persuade the
world’s biggest capital market to adopt its rules.

Lack of U.S. adoption has been a glaring gap in efforts to
create a set of truly worldwide accounting rules. The
International Accounting Standards Board (IASB) is therefore
offering the United States a seat on its new 12-member forum of
national and regional accounting bodies, hoping this will help
bring it into the fold.

Feb 25, 2013

Investors face two sets of rules for banks’ loan losses

LONDON (Reuters) – Investors will have to grapple with two sets of rules for how banks recognize losses on loans after the world’s two main accounting regulators failed to agree a common approach.

At the height of the financial crisis in 2009, the Group of 20 industrial and industrializing nations asked the International Accounting Standards Board (IASB) and the U.S. Financial Accounting Standards Board (FASB) to align their rules to make cross-border comparisons between companies easier.

Feb 22, 2013

“Big Four” accountants under fire from watchdog

LONDON (Reuters) – Companies in Britain could be forced to switch accountants to break up the cosy relationships between the “Big Four” and their clients, blamed for masking weaknesses exposed by the financial crisis.

The “Big Four” – KPMGKPMG.UL, PwC PWC.UL, Ernst & Young ERNY.UL and Deloitte DLTE.UL – check the books of nearly all listed companies in Britain and around the world, and have often served the same clients for decades.

Feb 22, 2013

Competition Commission takes aim at UK accounting deals

LONDON (Reuters) – Britain’s listed companies could be forced to switch accountants to boost competition and end the cosy relationships that have dismayed shareholders, the Competition Commission warned on Friday.

Competition in the UK audit market is restricted by factors that make it hard for companies to switch accountants, the commission said in preliminary findings from a probe it began in 2011.

Feb 22, 2013

UK watchdog takes aim at accounting deals

LONDON, Feb 22 (Reuters) – Britain’s listed companies could
be forced to switch accountants to boost competition and end the
cosy relationships that have dismayed shareholders, a UK
watchdog warned on Friday.

Competition in the UK audit market is restricted by factors
that make it hard for companies to switch accountants, the
Competition Commission said in preliminary findings from a probe
it began in 2011.

    • 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."
    • Follow Huw