Regulation Correspondent, Europe
Huw's Feed
Jan 30, 2015

UK watchdog to review loan insurance compensation from banks

LONDON, Jan 30 (Reuters) – Britain’s markets watchdog will
collect evidence on whether consumers mis-sold loan insurance
are being compensated properly, after lenders have paid out 17.3
billion pounds ($26 billion) already in the country’s costliest
financial scandal.

The policies, known as Payment Protection Insurance or PPI,
were meant to protect borrowers in the event of sickness or
unemployment but were often sold to those who would have been
ineligible to claim.

Jan 29, 2015

British banks may seek outside checks on published capital ratios

LONDON, Jan 29 (Reuters) – Banks in Britain may end up
hiring auditors to endorse the capital ratios they publish to
increase investor confidence, an accounting body said on
Thursday.

The ICAEW said it was working with the Bank of England’s
supervisory arm, the Prudential Regulation Authority, on whether
confidence in capital ratios, a core benchmark of health, would
be increased if they were formally audited.

Jan 29, 2015

Exclusive: EU watchdogs could hold sway over London in Europe markets union – document

LONDON (Reuters) – Proposals to create a U.S.-style capital market across Europe to increase companies’ financing options could give European regulators more powers at the expense of the City of London, a European Union document showed.

The plan aims to create a so-called capital markets union by 2019 from Europe’s fragmented bond and stock markets. It outlines possible reforms to allow markets, rather than banks, to become the main source of cash for the region’s companies to help to boost growth and create jobs.

Jan 28, 2015

Deloitte retains top spot among “Big Four” accountants-survey

LONDON, Jan 28 (Reuters) – Deloitte has retained
top spot among the world’s “Big Four” accountants, a survey
showed on Wednesday, noting those leading firms had so far
retained their grip on the audit market in the face of
regulatory changes designed to boost competition.

Deloitte, whose audit clients range from carmaker General
Motors Co to investment bank Morgan Stanley,
achieved total fees including consultancy work of $34.2 billion
last year, giving it a $248 million lead over second-placed PwC
, the annual International Accounting Bulletin World
Survey said.

Jan 27, 2015

EU says near deal with Washington on derivatives rules

LONDON (Reuters) – The European Union and the United States are poised to accept each other’s rules on financial derivatives trading in a bid to prevent a global market that supports economic growth from fragmenting, a senior EU official said on Tuesday.

The two sides are introducing rules to make derivatives such as credit default swaps more transparent after their opacity played a key role in exacerbating the 2007-09 financial crisis.

Jan 27, 2015

UK markets watchdog, quizzed on approach, says doesn’t ‘shoot first’

LONDON, Jan 27 (Reuters) – Britain’s financial markets
watchdog does not “shoot first and ask questions later”, its
head said on Tuesday, responding to questions from lawmakers
over its mishandling last March of the announcement of an
insurance market review.

Financial Conduct Authority (FCA) chief executive Martin
Wheatley said he now regretted using that phrase in 2012 to
describe the way the FCA, which was launched in April 2013,
would approach its brief.

Jan 27, 2015

Exclusive: EU aims to complete capital markets union by 2019 – document

LONDON (Reuters) – The European Union will put in place its “capital markets union” by 2019, starting with quick wins like encouraging direct investment in businesses, an EU document seen by Reuters showed.

The document, co-written by EU financial services chief Jonathan Hill, sets out a timetable for the first time on a core policy plank of the European Commission to help revive the bloc’s flagging economy.

Jan 23, 2015

Global bank watchdog to review rule on zero-risk weighting for sovereign debt

LONDON, Jan 23 (Reuters) – Global banking supervisors are
reviewing a rule that allows banks to hold little or no capital
against risky sovereign debt held on their books.

The so-called zero-risk weighting rule was heavily
criticised during the euro zone debt crisis when several
countries in the single currency area had to be bailed out.

Jan 23, 2015

Bank of England says lenders must do more to shore up cyber defences

LONDON, Jan 23 (Reuters) – Britain’s banks must do more to
protect themselves and the wider financial system from growing
and evolving cyber crime, the Bank of England said on Friday.

Worried by the increasing rate of attacks on banks by
Internet hacks, the BoE surveyed 36 financial firms and banks in
Britain and found no immediate critical shortcomings in their
defences.

Jan 22, 2015

BoE says UK insurer capital won’t rise under EU rules

LONDON, Jan 22 (Reuters) – European Union rules from 2016 to
keep insurance companies stable will not be an excuse for
regulators to ramp up capital requirements for insurers in
Britain, a senior Bank of England official said on Thursday.

The so-called Solvency II rules aim to ensure insurers such
as Britain’s Prudential and Aviva hold enough
capital to honour policyholder commitments even when markets
turn sour.

    • 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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