Regulation Correspondent, Europe
Huw's Feed
May 24, 2013

European money market funds face cash buffer rule

LONDON (Reuters) – About half of the European Union’s trillion euro (850 billion pound) money market funds would have to set aside a chunk of cash under a proposed EU reform to make a run on a fund in rocky markets less likely.

Money market funds (MMFs) hold short term financial instruments such as deposits and commercial paper. They are used by big companies to park money and manage cash flows.

May 23, 2013

European money market funds face cash buffer rule – EU document

LONDON, May 23 (Reuters) – About half of the European
Union’s trillion euro money market funds would have to set aside
a chunk of cash under a proposed EU reform to make a run on a
fund in rocky markets less likely.

Money market funds (MMFs) hold short term financial
instruments such as deposits and commercial paper. They are used
by big companies to park money and manage cash flows.

May 22, 2013

EU watchdog to tighten securitised debt rules

LONDON, May 22 (Reuters) – European Union regulators have
proposed tighter safeguards on sales of the type of securitised
debt that became untradable in the financial crisis, forcing
taxpayers to rescue banks.

Securitisation is the consolidation of loans such as
mortgages and credit cards and selling them as bonds to
investors, with loan repayments paying the interest.

May 21, 2013

Hopes rise for deal on delayed EU insurance rules

LONDON, May 21 (Reuters) – The European Union is nearing a
deal on long-delayed insurance rules that the bloc has touted as
a regulatory benchmark for the world to follow, regulatory and
policy officials said.

The rules, known as “Solvency II”, will seek to improve the
method for deciding how much capital an insurer must hold as a
safety buffer by better assessing risks and liabilities from
customer policies.

May 21, 2013

EU watchdog unveils caps for bank bonuses

LONDON (Reuters) – EU regulators confirmed on Tuesday they will cap bonuses of bankers earning more than 500,000 euros a year and added other conditions to make the pay ceiling harder to smash.

The headline figure was leaked last Friday, triggering warnings by banks in the European Union that they may lose staff to other parts of the world, and that London, the bloc’s top financial center, could be damaged.

May 20, 2013

EU law key to ending “too big to fail” banks – BoE’s Tucker

LONDON/STRASBOURG, France, May 20 (Reuters) – A European
Union law up for a vote on Monday will only fully shield
taxpayers from bailing out troubled banks if there is a global
framework as well, a top UK regulator said on Monday.

Bank of England Deputy Governor Paul Tucker said the EU law
on bank recovery and resolution would be a milestone towards a
global system and help convince markets that governments were no
longer willing to rescue “too big to fail” lenders.

May 17, 2013

EU bonus cap could hit 10 times as many London bankers

LONDON, May 17 (Reuters) – European Union officials will
next week propose capping financial sector pay above 500,000
euros, accountancy firm PwC said on Friday, suggesting the
world’s most stringent curbs for the industry will affect far
more bankers than previous rules.

The European Banking Authority will next week for the first
time put a number on where it would like its planned bonus cap
to start and PwC said in a statement that the threshold would be
set at 500,000 euros.

May 16, 2013

EU supervisors to study banks’ assets, delay stress test

LONDON, May 16 (Reuters) – Supervisors across the European
Union will examine the way that top banks classify and value
loans and other assets to ensure that the stress tests they
conduct do a better job of finding any problems.

The European Banking Authority (EBA) said on Thursday it
will set out guidelines for the review, which will delay the
bloc’s next round of stress tests until 2014.

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.

    • 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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