Regulation Correspondent, Europe
Huw's Feed
May 7, 2014

EU watchdog sounds warning over patchwork transaction tax

LONDON (Reuters) – A tax on stock, bond and derivatives transactions in fewer than half of European Union member states would “not be good” for the bloc’s securities market, a top EU regulator said on Wednesday.

The aim of the tax is to make banks pay back some of the taxpayer money they were given during the 2007-09 financial crisis but the levy is likely to raise only a fraction of the 35 billion euros originally hoped for as splits emerge over what should be taxed.

Apr 29, 2014

EU watchdog to clarify sovereign debt ratings rules

LONDON (Reuters) – The European Union’s regulator for credit rating agencies will clarify new rules on publishing changes to sovereign debt ratings to help investors confused by firms’ differing approaches.

The big three of Standard & Poor’s, Moody’s and Fitch have each responded differently to rules laid out by the European Securities and Markets Authority (ESMA), which authorizes and regulates credit rating agencies in the 28-country bloc.

Apr 29, 2014

Bank of England to test UK lenders’ resilience to 35 pct fall in house prices

LONDON, April 29 (Reuters) – Britain’s lenders will have to
show they hold enough capital to withstand a near 35 percent
slump in house prices and a spike in interest rates to 4
percent, the Bank of England (BoE) said on Tuesday.

The BoE’s Prudential Regulation Authority (PRA) said eight
of Britain’s biggest banks and building societies will have to
undergo the so-called stress test, in some cases on top of
separate European Union tests also announced on Tuesday.

Apr 29, 2014

EU unveils tougher bank test in bid to draw line under crisis

LONDON (Reuters) – European banks must show they can survive simultaneous routs in bonds, property and stocks in the toughest test to date by regulators aiming to restore confidence in an industry that had to be rescued by taxpayers in the financial crisis.

The European Banking Authority (EBA) said on Tuesday it would gauge the resilience of 124 banks from the 28-country European Union to see if they would still have enough capital after facing a toxic cocktail of theoretical shocks.

Apr 28, 2014

Low interest rates a focus in EU insurers health check

FRANKFURT/LONDON (Reuters) – European insurers will be tested to see whether they could stay in business even if interest rates remained at historic lows for a long time, a top regulator said on Monday.

Low interest rates make it harder for insurers to generate income from the assets they hold, thereby raising questions about their ability to pay out on customer policies.

Apr 25, 2014

EU court to rule on UK challenge to transaction tax

LONDON, April 25 (Reuters) – Britain may lose its challenge
to stop plans by 11 euro zone countries to tax financial
transactions when the European Union’s top court rules next
week, lawyers said on Thursday.

Britain is challenging an EU decision allowing the group of
EU members to push ahead with their plans to tax stock, bond and
derivatives trades to help make banks pay for the public money
they received in the 2007-09 financial crisis.

Apr 23, 2014

UK plans tougher pay rules for top company executives

LONDON, April 24 (Reuters) – Britain’s stock-market listed
companies should be able to claw back bonuses paid to poorly
performing executive board members, a regulator proposed on
Thursday, mirroring steps already being taken by banks.

The Financial Reporting Council (FRC) published how it plans
to toughen its corporate governance code, a set of standards
which companies must comply with or explain publicly why they do
not.

Apr 17, 2014

EU watchdog chief sees no clearing requirement for forex

LONDON, April 17 (Reuters) – Foreign exchange dealers won’t
face the added cost of having to clear some currency trades if
the European Union decides they must come under new EU rules to
make derivatives markets safer, a top regulator said.

The bloc’s executive European Commission is deciding whether
part of the $5.3 trillion a day foreign exchange market should
be legally defined as derivatives under the bloc’s laws.

Apr 17, 2014

Global accounting body airs possible reform of bank hedging rule

LONDON (Reuters) – Investors would be able to make a more accurate assessment of how well banks manage risks on their books under proposals published by the International Accounting Standards Board (IASB) on Thursday.

Risk management has risen to the top of the regulatory agenda for banks after the 2007-09 financial crisis left taxpayers having to bail out lenders who failed to disclose potential problems on their balance sheets.

Apr 15, 2014

Regulators ease rule curbing banks’ exposures to customers

LONDON (Reuters) – Global regulators have eased a new rule limiting how much business a bank can undertake with a single customer, as they try to minimize the risk of fallout from a counterparty going bust without imposing excessive burdens on financial firms.

Regulators want to avoid the damage to financial stability an insolvency can wreak, as seen with the collapse of U.S. bank Lehman Brothers in 2008 which led to taxpayers bailing out several lenders.

    • 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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