Regulation Correspondent, Europe
Huw's Feed
Nov 20, 2014

EU should keep limit on bank bonus, adviser says in blow to UK

BRUSSELS/LONDON (Reuters) – Britain’s relations with the European Union took another knock on Thursday when its legal challenge to a limit on bankers’ bonuses was rejected by an adviser to the bloc’s top court.

The EU law aims to curb the kind of risk-taking that led to the financial crisis by limiting bonuses awarded from 2015 to a sum no more than a banker’s fixed pay, or twice that level with shareholder approval.

Nov 19, 2014

UK challenge to banker bonus cap faces test in EU court

LONDON, Nov 19 (Reuters) – Britain’s challenge to the
European Union’s cap on bankers’ bonuses will be tested on
Thursday when a legal advisor to the EU court handling the case
will give an opinion on the issue.

Any setback for Britain in the case could give more
ammunition to anti-EU campaigners in Britain, including the UK
Independence Party, which hopes to win a vote on Thursday that
would give it a second parliamentary seat.

Nov 18, 2014

EU’s finance chief wants more competition in retail financial services

LONDON, Nov 18 (Reuters) – The European Union should open up
retail financial services to more competition to bring lower
prices for consumers who will also then see how EU membership
can produce tangible benefits, the bloc’s new financial chief
said on Tuesday.

Jonathan Hill, European financial services commissioner
since Nov. 1, pointed to liberalisation of telecoms as an
example where EU action has pushed down the price of a
cross-border mobile phone call, one of the EU’s most popular
policy moves.

Nov 17, 2014

Curbs threaten European CNAV money market funds – EU documents

LONDON (Reuters) – A swathe of money market funds in the European Union could be wiped out under new rules proposed by a senior lawmaker in the bloc’s parliament in an attempt to break a legislative deadlock.

The proposal, if approved by the parliament and EU states, would force companies to switch to the other main type of money market fund whose share price floats, creating accounting issues for some of them, or put their money elsewhere.

Nov 17, 2014

Investment adviser Chase de Vere fined over “death bonds”

LONDON, Nov 17 (Reuters) – Britain’s financial watchdog has
fined investment adviser Chase de Vere 560,000 pounds ($875,800)
for failings in the way it sold so-called “death bonds” worth 49
million pounds ($77 million) to nearly 3,000 people.

The bonds promised high returns generated by pools of
second-hand U.S. life insurance policies, which generated an
income stream as their original owners died and insurance
companies paid out on them.

Nov 14, 2014

U.S. regulator says swaps rules need tweaks to preserve global market

LONDON (Reuters) – New rules aimed at making derivatives markets safer and more transparent need tweaking to stop the $690 trillion global market splitting up, a top American regulator said on Friday.

Several shallower pools of trading are emerging in what had been one deep, efficient market as brokers outside the United States seek to avoid having to comply with sometimes conflicting U.S. and home country rules.

Nov 14, 2014

G20′s Carney says bank crisis reforms ‘substantially complete’

LONDON (Reuters) – The job of fixing flaws that led to the 2007-09 financial crisis is largely done and the focus will turn to spotting new risks and rebuilding trust among regulators, a global watchdog set up by the Group of 20 (G20) leading economies said on Friday.

The Financial Stability Board (FSB) has coordinated the enforcement of rules forcing banks to hold more capital after many were bailed out by taxpayers in the crisis.

Nov 13, 2014

New British financial watchdog to open bank payments to competition

LONDON, Nov 13 (Reuters) – Britain’s newest regulator set
out on Thursday how it will wrest strategic direction of the 75
trillion pound ($118 trillion) payments sector from its big bank
owners to spur competition.

The payments system forms the vital plumbing that allowed
people and companies to make 21 billion transactions in 2013 via
online banking, cheques and cash machines.

Nov 12, 2014

Basel watchdog flags shake-up of bank capital calculations

LONDON (Reuters) – Global banking regulators have outlined how they will crack down on wide variations in the way big banks calculate the size of their capital buffers.

Regulators on the Basel Committee, which sets rules for the sector worldwide, worry that such variations undermine investor confidence in the capital ratios, a key measure of financial health.

Nov 11, 2014

UK caps interest on payday loans to stem “spiralling debts”

LONDON, Nov 11 (Reuters) – Interest charged on loans offered
by payday lenders in Britain will be capped from January to cut
the cost of short-term loans criticised for causing misery among
borrowers, the country’s financial watchdog said on Tuesday.

Payday lenders offer to tide borrowers over until they
receive their salary, and anti-poverty campaigners say the
sector has grown sharply in recent years as the cost of living
rises and some people struggle to have access to credit.

    • 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