Further to CP11/17, FSA sets out the final rules requiring certain firms to maintain and be able to retrieve a CASS Resolution Pack. The CASS RP contains documents and records that would help an insolvency practitioner return client assets more quickly following an investment firm failure. FSA summarises the feedback received and explains the changes have made as a result. It is noted that FSA will set out its response to other matters covered in CP11/16 in due course.

This EC press release argues that, if adopted as a new own resource of the EU budget the financial transaction tax will significantly reduce the contributions of member states to the EU budget. According to estimates presented yesterday by the EC, Member States' contributions would be cut by €54bn in 2020 (a table within the press release estimates how each inpidual member state would be affected). . The EC proposes that two thirds of the revenues of the tax go to the EU budget, with the remaining one third being retained by Member States. It notes comments by Financial Programming and Budget Commissioner Janusz Lewandowski: “taxing the transactions of all financial institutions at rates as low as 0.01% is only fair. The financial sector does not pay VAT and has received massive support by taxpayer's money”.

This press release considers the pros and cons for the proposal financial transaction tax and notes that the Economic and Monetary Affairs Committee will scrutinise the plans before making a recommendation to MEPs, who are expected to vote on the proposal during the June plenary.

A new version of the Regulation has been published. It is not marked up to show changes since the Regulation was announced as adopted (February 2012).

Topics include: ESMA’s objectives and resources; AIFM Directive (including, specifically, third party aspects, data collection and remuneration – it is noted that a consultation on the last of these will be published in Q2 2012) and proposed the Regulations on venture capital and social entrepreneurship funds.

In a speech drawn from a paper presented at SIFMA’s Legal Entity Identifier Symposium in New York, Andrew Haldane considers the benefits of finance adopting a common language. He argues that exposed failures in the information systems of many firms, with few having the means to aggregate quickly information on exposures and risks which consequently hindered effective consolidated risk management and argues that “complete counterparty data, collected according to common standards, would enable a much more accurate calibration of the financial interconnectivity of key financial nodes.” He also suggests that “with open access to borrower information, held centrally and virtually, there is no reason why endsavers and end-investors cannot connect directly. The banking middle men may in time become the surplus links in the chain”.

This consultation examines the key regulatory issues regarding ETFs and proposes 15 principles against which both the industry and regulators can assess the quality of regulation and industry practices relating to ETFs regarding investor protection, sound functioning of markets and financial stability. The proposed principles address ETFs that are organised as CIS. Of the 15 proposals, 14 are categorised as relating to ETF classification and disclosure; marketing and sale of ETF shares and structuring – the 15th relates to the broader risk of liquidity shocks and transmission across correlated markets. Responses are required by 27June 2012.

ESMA has now published the responses to this consultation, available to download inpidually via the following link.

FSCS reports that it has considered the role of some IFAs in relation to the firm, and believes that eligible claims may exist. It has found some failed IFAs may be liable for losses suffered by consumers where mis-selling can be shown to have occurred. (29/02/12) FSCS > CF Arch Cru update

FSA has published finalised guidance on distributor-influenced funds for distributors using distributor-influenced funds and finalised guidance for firms that help distributors run distributor-influenced funds or offer them through products or platforms, together with a summary of feedback received.