EBA’s Board of Supervisors has made a preliminary assessment of banks’ capital plans submitted in response to EBA’s recommendation on recapitalisation. The review highlights that, in aggregate, the shortfalls are expected to be met primarily through direct capital measures. The measures are not viewed as having a negative impact on lending into the real economy. The Board of Supervisors also agreed that, in the context of the ongoing recapitalisation exercise, EBA would undertake its next EU-wide stress test in 2013.

A link to the keynote speech given by Steven Maijoor follows. Topics include: EMIR; FX derivatives; global consistency with regard to regulation; the Legal Entity Identifier project; CCP; MiFID II; securitisation and credit rating agencies. (9/02/12)

HMT has published ToR in respect of the above group, which is tasked with devising a suite of simple financial products that will help consumers navigate the financial services market. The aim is to help increase the number of new participants in financial markets by providing straightforward, easy to understand products that are clearly identifiable as meeting “simple product” standards. It is noted that responses to the Government consultation on simple products suggest that the group should initially focus on simple deposit savings and protection insurance products. The item also sets out the governance of the group. It is envisaged that a report from Carol Sergeant, who is chairing the group, will be sent to the Financial Secretary by the end of July 2012.

OFT published this revised statement, replacing the one published in March 2010. It is emphasised that it does not replace existing guidance on compliance issues relating to specific areas of enforcement. It is designed to complement it, drawing together the legislative and policy requirements stemming from the better regulation agenda and summarising the key common elements in a coherent form and should also be read alongside OFT's prioritisation principles. OFT notes, in light of the June 2010 consultation on changes to the consumer landscape, that the, statement reflects the position on the date of publication.

FSB has published a peer review report on DIS. It found those reviewed were broadly consistent with FSB’s core principles in areas such as mandates, membership arrangements and adequacy of coverage, but noted some areas where there appear to be pergences from, or inconsistencies with the principles and concluded that more precise guidance may be required in certain areas. The report recommends that FSB member jurisdictions without an explicit DIS should establish one in order to maintain financial stability by protecting depositors and preventing bank runs; FSB member jurisdictions with an explicit DIS should undertake actions to fully align their DIS with the core principles in areas where there appear to be pergences from, or inconsistencies with, those principles; IADI should, in consultation with the BCBS and other relevant bodies where appropriate, update its guidance that pre-dates the financial crisis and also consider developing additional guidance and that FSB review and evaluate the actions taken by its members in response to the recommendations in this report.

Hansards has published the transcript of the HoC debate which took place on 7 February 2012. The motion in the name of Chuka Umunna called on the Government to "increase transparency, accountability and responsibility in the setting of pay in the banking sector, including through the immediate implementation of the Walker Review on corporate governance, and the placing of an employee representative on the remuneration committees of company boards" and to "reform the banking sector so that it better supports businesses and provides the credit they need to create jobs and growth." Minister of State, Department for Business, Innovation and Skills, Mark Prisk responded on behalf of the Government. The House pided (voted) and the motion was defeated on pision (Ayes: 244, Noes: 295). (8/02/12)

Economic and Monetary Affairs Committee discussed draft EU legislation on market abuse on Monday, the MEP’s debated definitions of insider trading and the proper monitoring and punishment of market abuse. This comes as a result of the problems thrown up by the financial crisis and aims to create unified criminal and administrative penalties throughout EU member states. This is of particular note with relation to cross border regulations necessary as a result of the increased integration of EU markets. The sanctions and regulations considered are as follows: market players undeterred by sanctions to be excluded from the markets, real time cross border surveillance, whistle blowing, consideration of high frequency trading. Draft report due 26th March, amendment deadline, 24 April, committee vote July

The Treasury has announced an expansion of insider trading regulations in the draft Financial Markets bill to replace the Securities Services Act. Regulations will now consider a broker knowingly dealing on behalf of someone with insider information to be an offence. They will also define manipulation trading to include circumstances where people engage in activity which they suspect is aimed at manipulating share prices. The changes further tighten regulations by removing some of the ‘outdated’ defences from current law. JSE CEO Nicky Newton-King has welcomed the adjustments.

Adrian Guest has been appointed to the position of Sales Manager EMEA within b-next, who provide Market Abuse Surveillance and Insider dealing software, Martin Porter has also been appointed to the position of Business Development Director.

OFT has completed a market study of extended warranties which highlighted competition concerns in the £1 billion per year extended warranties market. Dixons, Comet and Argos, the largest retail providers of extended warranties, have offered legal undertakings to improve the way that the market works. OFT is now consulting on whether to accept these undertakings, which include improving information provided to consumer and launching a comparison website, instead of referring the market to the Competition Commission for a detailed investigation OFT’s market study found that, despite some improvements in the market including some lower prices, several competition concerns remain. OFT especially highlights retailers’ “point of sale” advantage when selling warranties; the fact that consumers do not have enough relevant information to make an informed decision about whether the extended warranty is value for money at the time they buy the warranty and issues surrounding “pay as you go” warranties where consumers pay for a rolling monthly contract, which can be much more expensive than comparable fixed term warranties. Responses to the consultation on the undertakings (at Annexe B of the market study) are required by 7 March 2012.