Regulation Correspondent, Europe
Huw's Feed
Jun 16, 2014

EU legal opinion says exemption for UK bank rules from EU curbs “illegal”

LONDON, June 16 (Reuters) – - Exempting Britain’s banks from
planned European Union rules to curb risky trading would be
illegal, the bloc’s lawyers said on Monday in a legal opinion
that marks another setback for UK attempts to limit Brussels’
influence on the City.

EU financial services commissioner Michel Barnier has
proposed a law that would slap curbs on so-called proprietary
trading or banks taking bets on the market. It is similar to the
so-called Volcker Rule that the United States has already
approved.

Jun 16, 2014

UK watchdog fines Credit Suisse, Yorkshire Building Society

LONDON (Reuters) – Britain’s Financial Conduct Authority has fined Credit Suisse International and Yorkshire Building Society for promising unrealistic returns to investors who had limited knowledge of markets.

The FCA said in a statement on Monday it has fined Credit Suisse International 2.4 million pounds ($4 million) and Yorkshire Building Society 1.4 million pounds, its second and third biggest fines for marketing failures related to investments totalling 797 million pounds.

Jun 13, 2014

EU to toughen up bankers pay rules

LONDON, June 13 (Reuters) – The European Union’s banking
watchdog will toughen up its guidelines on bankers’ pay after a
study uncovered wide variations in how lenders apply the rules
across the 28-country bloc and how banks are avoiding the bonus
cap.

The European Banking Authority (EBA) did not say how it will
toughen the rules but this is likely to include tighter
supervision and more detail in how the rules should be applied.

Jun 12, 2014

UK plans to make currency-rigging a crime but rejects EU rules

LONDON, June 12 (Reuters) – British finance minister George
Osborne rejected European Union plans to outlaw currency market
manipulation on Thursday and instead set out his own proposals
to make rigging exchange rates a criminal offence.

EU laws taking effect in 2016 will make it a criminal
offence with a four-year jail term to rig key prices in a wide
range of financial markets.

Jun 11, 2014

ECB may buy “simple and transparent” ABS, says Mersch

BARCELONA, Spain/LONDON, June 11 (Reuters) – The European
Central Bank may buy “simple and transparent” asset-backed
securities (ABS) to help achieve its target of delivering price
stability to the euro zone, ECB Executive Board member Yves
Mersch said on Wednesday.

Asset-backed securities are created by banks pooling loans
like mortgages or car loans into an interest-bearing bond that
is sold to raise funds.

Jun 10, 2014

UK watchdog expects progress on global accounting rules

LONDON (Reuters) – The United States may allow its companies to use international accounting rules while stopping short of making their use mandatory, a UK regulatory agency said on Tuesday.

World leaders have called for a single set of global book-keeping rules so investors can compare companies more easily.

Jun 10, 2014

Bank of England steps up fight against cyber crime

LONDON, June 10 (Reuters) – The Bank of England sought to
bolster the financial industry’s defences against cyber-attacks
on Tuesday when it unveiled a new framework to spot and test
possible weak points at lenders.

The Bank has said that hacking represents a growing risk for
the financial system which handles money for millions of
customers and companies in Britain.

Jun 9, 2014

Banks tell ECB, BoE to back securitised debt talk with action

LONDON, June 9 (Reuters) – Europe’s two top central banks
must turn talk of reviving the securitised debt market to fund
economic growth into speedy action, a top banking lobby said on
Monday.

The market for debt backed by pooled home and other loans
was tarnished when bonds securitising low quality U.S. mortgages
became untradable, kicking off the 2007-09 financial crisis that
eventually led to taxpayers having to bail out banks.

Jun 6, 2014

Basel chief says no appetite to ditch banks’ risk model

LONDON (Reuters) – The global rules used by banks to assess how much capital they need to hold to limit risk will be simplified not scrapped in the face of criticism from the UK and U.S. over how the rules are interpreted, a top regulator said on Friday.

Studies have found wide variations in how banks add up risks, leading some supervisors to accuse them of gaming the system to cut down on how much capital they must hold.

Jun 5, 2014

Eurogroup head floats idea of giving reformers extra time

LONDON, June 5 (Reuters) – Euro zone countries could get
more time to meet budget targets as part of a “contract” to
carry out effective reforms, Jeroen Dijsselbloem, who heads the
Eurogroup of finance ministers, said on Thursday.

The European Commission could play a role in checking
whether changes such as relaxing labour market rules were
actually being done in return for more time to make changes such
as cutting government debt, Dijsselbloem said.

    • 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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