24935 Search Results for
  • BoE: Speech by Michael Cohrs: Broken glass - moving towards sustainable financial regulation (13 November 2012)

    13.11.2012
    Text of this speech, given in Bristol Michael Cohrs discusses the progress of domestic and international regulators in reforming the financial system following the crisis, underlines the limitations of...

    Text of this speech, given in Bristol Michael Cohrs discusses the progress of domestic and international regulators in reforming the financial system following the crisis, underlines the limitations of regulation, and highlights key challenges. He argues that there is “an inherent tendency for policymakers to re-fight the last war” and says “we shouldn’t pretend we can eliminate financial crises completely … “Perhaps the now discredited concept of allowing financial companies to blow themselves up, and then try and better deal with the fall-out, may be whether we like it or not, the reality of where we end up”. He also considered Vickers/Liikanen, but warned that “if Liikanen and Vickers are enacted in full force there will be a considerable benefit ... But, unless a fear of failure changes the behaviour of bankers and investors (even in the good times), and unless new statute implements them fully – Vickers for instance called for 17% to 20% loss absorbing capital and a leverage ratio of 4.06% – I don’t believe they will necessarily make financial institutions much less likely to fail although they are an important step forward”. He argues that more thought needs to be given to creating “a better college of regulators”. He underlines the imperative of tackling the too big / too important to fail issue and says that “more urgency is needed on this problem: “it is clear that under almost any set of parameters many large financial companies are both too big and complex to be managed and too big and complex to be resolved without a lot of broken glass”. Absent a clearer explanation of the benefits of size and the need to be global, the regulatory bodies should, he says, consider penalties or taxes on the largest banks to create ‘insurance funds’ which will be used when resolving one of the exceptionally large financial companies and to create an economic incentive for firms to down-size, over and above the 2.5% capital surcharge that Basel III has recommended.

    Support Information:
    http://www.bankofengland.co.uk/publications/Documents/speeches/2012/speech620.pdf
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  • Department of Energy and Climate Change: Oral statement by Edward Davey on allegations of manipulation in the gas market (13 November 2012)

    13.11.2012
    This is the text of a statement given in HoC today. In this, Edward Davey notes that DECC and HMT had were informed last Friday afternoon that FSA had received allegations of manipulation of the UK gas...

    This is the text of a statement given in HoC today. In this, Edward Davey notes that DECC and HMT had were informed last Friday afternoon that FSA had received allegations of manipulation of the UK gas market and that FSA and OFGEM will consider these allegations, with support from officials from DECC He further notes: “the UK was already aiming to be one of the first countries to implement REMIT in full and Government has been working with OFGEM over the past few months on the detailed implementation of these powers. Yet if it were to prove to be the case that the existing wide ranging powers to tackle market abuse and these new REMIT powers are insufficient, I have written to the FSA, OFGEM and the OFT, asking them to identify any remaining gaps in their powers to deal with allegations of this sort”.

    Support Information:
    http://www.decc.gov.uk/en/content/cms/news/ed_os_gm/ed_os_gm.aspx
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  • HoL: Financial Services Bill

    13.11.2012
    The Bill has now reached report stage and line by line examinations of the Bill took place during the report stages on 5 and 12 November. Amendments discussed covered clause 1-6 of the Bill – see...

    The Bill has now reached report stage and line by line examinations of the Bill took place during the report stages on 5 and 12 November. Amendments discussed covered clause 1-6 of the Bill – see links below for transcripts.. A third day of report stage is scheduled for 20 November 2012.

    Support Information:
    http://www.publications.parliament.uk/pa/ld201213/ldhansrd/text/121106-0001.htm#12110694000424
    http://www.publications.parliament.uk/pa/ld201213/ldhansrd/text/121112-0001.htm#12111212000785
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  • EC: Statement on financial transaction tax and savings at ECOFIN Council (13 November 2012)

    13.11.2012
    This is the text of a statement from Algirdas Šemeta, Commissioner responsible for Taxation and Customs Union, Audit and Anti-fraud. He notes: “Our analysis showed that enhanced cooperation...

    This is the text of a statement from Algirdas Šemeta, Commissioner responsible for Taxation and Customs Union, Audit and Anti-fraud. He notes: “Our analysis showed that enhanced cooperation on FTT will not undermine the Internal Market. On the contrary, it will significantly reduce its fragmentation and will strengthen it. … This stage of the procedure is about allowing the 11 Member States to go ahead with an FTT in the context of Treaty provisions - as opposed to inter-governmental cooperation - while, of course, respecting EU law. … This is a proposal which could ultimately allow us to make great head-way in reducing the serious problem of tax evasion. And yet, here we still are…discussing. It is very disappointing that we are still stuck at this point. … I fail to understand the arguments which are being used to oppose progress. If some Member States want to maintain bank secrecy domestically, for their own residents, that's their choice. Our discussions do not put this into question. … The EU approach does not impose anything on Austrian or Luxembourger residents. It only allows the other 25 member States to ensure the fair taxation of their own residents, according their national rules. Looking for equivalence in treatment from Switzerland is our common endeavour”.

    Support Information:
    http://europa.eu/rapid/press-release_SPEECH-12-809_en.htm
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  • EC: Regulation (EU) No 1011/2012 of the European Central Bank of 17 October 2012 concerning statistics on holdings of securities (ECB/2012/24)

    13.11.2012
    This has been published in the Official Journal.

    This has been published in the Official Journal.

    Support Information:
    http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:305:0006:0024:EN:PDF
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  • ESMA: Speech by Steven Majoor: Developments in European financial reporting - regulation and enforcement (12 November 2012)

    13.11.2012
    Text of the above, given at a “Meet the Experts” forum in London, follows. Topics include: ESMA’s work on the single rulebook and financial stability; investor protection; credit rating...

    Text of the above, given at a “Meet the Experts” forum in London, follows. Topics include: ESMA’s work on the single rulebook and financial stability; investor protection; credit rating agency supervision; EURIBOR; IFRS; audit and forbearance.

    Support Information:
    http://www.esma.europa.eu/system/files/2012-731.pdf
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  • Final Notice: Savoy Investment Management Limited

    13.11.2012
    FSA has fined the firm £412,000 for failing to take reasonable care to ensure the suitability of the investment portfolios of its wealth management clients It allowed its investment managers a high...

    FSA has fined the firm £412,000 for failing to take reasonable care to ensure the suitability of the investment portfolios of its wealth management clients It allowed its investment managers a high degree of discretion to advise its wealth management clients on their investment portfolios. It had limited front office controls and its other processes failed to ensure the suitability of its advice and portfolio management. This included failures to collect and record KYC information and failures in its compliance monitoring processes. FSA has reviewed the firm as part of its thematic review of the wealth management sector. A review of a sample of files found that 23% showed a high risk of unsuitability. Files often lacked information on clients’ personal and financial circumstances and contained out of date and inadequate client information. The firm is doing a past business review of its investment services to its wealth management clients, which will determine whether clients need to be compensated. FSA further notes that it agreed to settle at an early stage and qualified for a 30% discount and that it has taken steps to change its management structure and processes. Without these changes and the past business review, the financial penalty would have been higher. The accompanying press release notes that “wealth management firms should be aware that the FSA is now undertaking a further review which will include assessments of systems and controls. We expect firms to heed our warnings on standards within the wealth management sector and learn the lessons coming out of our enforcement actions. We will take robust action against firms and inpiduals where we find serious failings.”

    Support Information:
    http://www.fsa.gov.uk/library/communication/pr/2012/101.shtml
    http://www.fsa.gov.uk/static/pubs/final/savoy-investment-management.pdf
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  • TSC: Independent Commission on Banking

    13.11.2012
    TSC has published a revised volume of written and oral evidence.

    TSC has published a revised volume of written and oral evidence.

    Support Information:
    http://www.publications.parliament.uk/pa/cm201213/cmselect/cmtreasy/680/680.pdf
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  • FSB: Third meeting of FSB’s Regional Consultative Group for Asia

    13.11.2012
    The meeting took place on 12 October 2012 in Seoul and this short note reports that matters under discussion included the impact of regulatory reforms in Asia and financial stability in the region.

    The meeting took place on 12 October 2012 in Seoul and this short note reports that matters under discussion included the impact of regulatory reforms in Asia and financial stability in the region.

    Support Information:
    http://www.financialstabilityboard.org/press/pr_121112.pdf
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  • EBA: Draft regulatory technical standards on own funds

    12.11.2012
    This consultation is intended to specify the conditions under which competent authorities may determine that a type of undertaking is recognised under applicable national law as a mutual, cooperative society,...

    This consultation is intended to specify the conditions under which competent authorities may determine that a type of undertaking is recognised under applicable national law as a mutual, cooperative society, savings institution or similar institution and complements the consultation published in April 2012. Responses are required by 21 December 2012. A public hearing is taking place on 26 November at EBA’s offices.

    Support Information:
    http://www.eba.europa.eu/cebs/media/Publications/Consultation%20Papers/2012/CP11/EBA-BS-2012-211-final-for-publication--Consultation-paper-on-draft-RTS-on-Article-25-2--a--.pdf
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