20 October - 24 October 2014

Regulatory and Legislative Developments from Across the Globe

World View

BIS Issues Report on International Banking Statistics
Basel LogoThe Monetary and Economic Department of the Bank for International Settlements issued a Report on International Banking Statistics at End of June 2014.
Report | Press Release

BIS Releases Working Paper on the Impact of Liquidity Regulation on Banks
The Bank for International Settlements' Monetary and Economic Department released a working paper on the impact of liquidity regulation on banks. Overall, the report finds that in response to tougher liquidity regulation, banks replaced claims on other financial institutions with cash, central bank reserves and government bonds - and so reduced the interconnectedness of the banking sector without affecting lending to the real economy.
Working Paper | Press Release

FSB Releases Draft Consultation on Information Sharing with Non-CMG Host Authorities
The Financial Stability Board released a consultative document on guidance on cooperation and information sharing with host authorities of jurisdictions not represented on CMGs where a G-SIFI has a systemic presence. The draft guidance sets out: the process for identifying non-CMG host jurisdictions; criteria for assessing the systemic nature of a G-SIFI's presence in a non-CMG host jurisdiction; cooperation and information sharing arrangements with a non-CMG host jurisdiction; and classes of information to be shared between home authorities and non-CMG host jurisdictions. Comments are due by December 1, 2014.
Consultative Document | Press Release

IMF Releases Working Paper on Cross-Border Lending
The International Monetary Fund released a working paper entitled "Financial Crises and the Composition of Cross-Border Lending." The paper examines the composition and drivers of cross-border bank lending between 1995 and 2012, distinguishing between syndicated and non-syndicated loans.
Working Paper

IMF Releases Working Paper on Regulating Capital Flows
IMF BuildingThe International Monetary Fund released a working paper entitled "Regulating Capital Flows at Both Ends: Does it Work?" The paper’s findings suggest a useful scope for policy coordination between source and recipient countries, as well as among recipient countries, to better manage potentially disruptive flows.
Working Paper

IMF Releases Working Paper on Financial Market Spillovers
The International Monetary Fund released a working paper entitled "Determinants of Financial Market Spillovers: The Role of Portfolio Diversification, Trade, Home Bias, and Concentration."  The paper finds that, if a country has a large amount of bilateral portfolio exposure in another country, these two countries’ comovement of bond yields are large, and that countries with stronger home biases face fewer spillovers from foreign markets.
Working Paper

EBA Releases Tool on Stress Tests
The European Banking Authority released a tool entitled "All You Need to Know About the 2014 EU-Wide Stress Test."
Tool | Practical Information | Press Release

EC Adopts Delegated Regulation and Draft Proposal on Banks Contributions to Resolution Funds
The European Commission has today adopted a delegated act and a draft proposal for a Council implementing act to calculate the contributions of banks to the national resolution funds and to the Single Resolution Fund respectively. With the adopted texts, the Commission fulfills its mandate from the European Parliament to specify the methodology for banks’ contributions in order to meet the target levels for resolution funds set by the Bank Recovery and Resolution Directive.
Delegated Regulation | Draft Proposal | Decision | FAQs | Press Release

New European Commission Approved by European Parliament
The European Parliament has approved the membership of the new European Commission with 423 votes in favour, 209 against and 67 abstentions. The new European Commission can start its term of office on November 1, 2014.
Press Release

EIOPA Releases Guidelines on Legal Entity Identifiers
The European Insurance and Occupational Pensions Authority released guidelines on the use of the legal entity identifier (LEI). With these Guidelines, EIOPA supports the adoption of the LEI system proposed by the Financial Stability Board (FSB) and endorsed by the G20, aimed at achieving a unique, worldwide identification of parties to financial transactions. EIOPA believes that the use of LEIs will enhance supervisory convergence and overall efficiency of the supervisory system while ensuring the high quality, reliability and comparability of data.
Guidance | Press Release

ESMA Issues Updated Q&A on Prospectuses
The European Securities and Markets Authority issued an updated set of questions and answers on Prospectuses in which it readopts or amends questions and answers related to prospectus summaries. The Q&A is aimed at competent authorities who carry supervisory responsibility under the Prospectus Directive and aims at ensuring convergence in supervisory activities across the EU.
Updated Q&A | Press Release

ESMA LogoESMA Releases Responses to Draft Consultations on New Market Abuse Regime
The European Securities and Market Authority released responses to its consultation papers titled “Draft Technical Standards on the Market Abuse Regulation” and “Draft Technical Advice on Possible Delegated Acts Concerning the Market Abuse Regulation.”
Market Abuse Regulation Responses | Delegated Acts Responses | Press Release

ESMA Releases Reports on Prospectus Approval and Passporting
The European Securities and Markets Authority released reports on ESMA Data on prospectuses approved and passported between January 2013 to December 2013, and prospectuses approved and passported between January 2014 to June 2014.
2013 Report | January-June 2014 Report | Press Release

Joint Committee Issues 2014 List of Identified Financial Conglomerates
The Joint Committee, consisting of the European Securities and Markets Authority, the European Banking Authority and the European Insurance and Occupational Pensions Authority, issued a joint list of identified financial conglomerates.
List | ESMA Press Release | EBA Press Release | EIOPA Press Release

CFTC Announces Counterpart to MOU with Additional Canadian Authority on Cross-Border Regulated Entities
The CFTC and the Manitoba Securities Commission signed a Counterpart to the Memorandum of Understanding signed on March 25, 2014, regarding cooperation and the exchange of information in the supervision and oversight of regulated entities that operate on a cross-border basis in the United States and in certain Canadian provinces.
Counterpart to MOU | Press Release

US Agencies Release Final Rule on Credit Risk Retention
The FDIC, Federal Reserve, FHFA, HUD, OCC and SEC released a joint Final Rule on Credit Risk Retention, pursuant to Section 941 of the Dodd-Frank Act. The Final Rule is effective with respect to asset-backed securities collateralized by residential mortgages one year after publication in the Federal Register, and is effective with respect to all other classes of asset-backed securities two years after publication in the Federal Register. Read SIFMA statement on risk retention rule.
Final Rule

ASIC Releases Strategic Outlook for 2014-2015
The Australian Securities and Investments Commission has released its Strategic Outlook for 2014-2015. It sets out the key risks ASIC sees to the markets it regulates, and how ASIC will respond - prioritizing its tools of surveillance and enforcement. ASIC scans the environment continually and uses the intelligence it gathers from its wide range of stakeholders. This document brings analysis of underlying trends together with the key risks to investors, financial consumers, and the sectors and participants it regulates for 2014 - 2015.
Strategic Outlook

LEIROC Endorses Pre-LOU – CFSTC – for Reporting and Other Purposes
The Legal Entity Identifier Regulatory Oversight Committee has decided to endorse the pro-Local Operating Unit (LOU) – CFSTC – so that the codes it issues may be used for reporting and other regulatory purposes. The People’s Bank of China originally presented endorsement materials for the China Financial Standardization Technical Committee (CFSTC) in September.
Press Release

SFC Signs Memorandum of Understanding with CSRC to Strengthen Enforcement Cooperation under Shanghai-Hong Kong Stock Connect
The Securities and Futures Commission and the China Securities Regulatory Commission has signed a memorandum of understanding on strengthening cross-boundary regulatory and enforcement cooperation under the proposed Shanghai-Hong Kong Stock Connect pilot program. The SFC and the CSRC have agreed to: provide for the sharing of information and data of risks and alerts about potential or suspected wrongdoing in either the Hong Kong or Shanghai stock markets under Stock Connect; establish a commitment and a process for joint investigations; ensure complementary enforcement action can be taken where there is wrongdoing in both jurisdictions; and make sure enforcement actions in both jurisdictions operate to protect the investing public of both the Mainland and Hong Kong, including actions that may be necessary to provide financial redress or compensation to affected investors.
Press Release

Hong Kong Secretary for Financial Services and the Treasury Responds to Question on the Implementation of the Mainland and Hong Kong Closer Economic Partnership Arrangement
KC Chan, Hong Kong’s Secretary for Financial Services and the Treasury, answered a set of questions on the Mainland and Hong Kong Closer Economic Partnership Agreement (CEPA). He said mainland China and Hong Kong have been maintaining close liaison on CEPA implementation, and will continue to do so. He further said that the Hong Kong government will seek to provide the financial services sector with greater access to mainland Chinese markets through CEPA.
Response

MAS Releases Consultation Paper of Risk-Based Capital Adequacy Requirements for Merchant Banks Incorporated in Singapore
The Monetary Authority of Singapore (MAS) released a consultation paper of proposed amendments to MAS Notice 1111 on risk-based capital adequacy requirements for merchant banks incorporated in Singapore. The amendments aim to strengthen the capital framework by incorporating key elements of the Basel III capital standards.
Consultation Paper

Richard Berner Speaks on Assessing Threats to Financial Stability
Office of Financial Research Director Richard Berner delivered a speech entitled "Financial Stability: Progress and Challenges" before the Money Marketeers of New York University in New York City. Berner spoke of “consequential progress” since the crisis towards enhancing financial stability, but emphasized that there is more work to do to address sources of vulnerability, gaps in data, and regulatory arbitrage.
Speech

Jon Cunliffe Speaks on the Importance of Strong Policy, Governance and Supervision in Banking Regulation
Bank of England Deputy Governor of Financial Stability Sir Jon Cunliffe delivered a speech entitled "Regulatory Reform and Returns in Banking" at the Chatham House conference on the New Shape of Banking in London. Cunliffe gave an overview of the major developments in the regulatory landscape since the financial crisis and the commercial implications of these changes for the banking industry.
Speech | Press Release

Jens Weidmann Speaks on Monetary Policy and Regulatory Reform
Deutsche Bundesbank President Jens Weidmann delivered a speech entitled "Reforms for Recovery and Resilience" at the Bank of Latvia Economic Conference 2014 in Riga, Latvia. Weidmann said the biggest bottleneck for growth in the euro area is not monetary policy or the lack of fiscal stimulus, but the structural barriers that impede competition, innovation and productivity.
Speech

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Of Interest

SIFMA LinkedIn Group & Facebook Exclusive: Win a Complimentary Pass to Our 2014 Annual Meeting 
“Follow” our LinkedIn Company Page for a chance to win a complimentary pass to SIFMA’s 2014 Annual Meeting. This contest is being offered exclusively to SIFMA’s LinkedIn Group members and those who “Like” us on Facebook. Follow our LinkedIn Company Page.

SIFMA YouTube Channel: Meeting the Challenges of a Global Economy
From employment to saving, what do we need to do to ensure America is meeting the changing demands of today and tomorrow? Watch as Lloyd Blankfein, Chairman & CEO of Goldman Sachs, and others weigh in during SIFMA's 2013 Annual Meeting. Sign-up for SIFMA’s 2014 Annual Meeting: Join today’s foremost thought leaders in New York City and hear their perspectives on how the financial services industry will best serve tomorrow's economy.

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GFMA & GFMA - Affiliate News & Events

On Tuesday in NYC | SIFMA's Legal Ethics Seminar – Webcast Available
Don’t miss your opportunity to complete all your Legal Ethics CLE requirements at one half-day seminar. Join us for SIFMA and SIFMA's Compliance & Legal Society's Ethics Seminar on Oct. 28 in NYC to hear the top industry professionals discuss the current ethical issues impacting the industry. If you are unable to attend in person, register for the live video webcast and still be eligible for credits. 

ASIFMA Annual Conference 2014: Developing Asia’s Capital Markets -- 5-6 November in Singapore
The two-day flagship conference of ASIFMA is an industry-wide event, providing a unique opportunity for global and regional policy makers, high-level regulators and industry representatives from both sell side and buy side to meet and discuss important issues affecting the development of Asia’s capital markets.
Register Today

SIFMA Annual Meeting: Full Program Available
SIFMA's 2014 Annual Meeting once again gathers the leaders of the financial services industry together with prominent policymakers and financial media in November. Join us to explore the role of capitalism in creating opportunity across America. In one-on-one conversations and on in-depth panels, today’s foremost thought leaders – including former Mayor of the City of New York and Founder of Bloomberg LP, Michael Bloomberg, and Co-Founder and Co-CEO of the Carlyle Group, David Rubenstein, and Stephen Luparello, the new Director of Trading and Markets for the Securities and Exchange Commission – will share their perspectives on how the financial services industry will best serve tomorrow's economy. Sign-up to attend!

Keynote Speakers Sneak Preview: SIFMA's AML Conference - Feb. 24-25, NYC
Hear from the SEC’s Director of Enforcement, Andrew Ceresney, and the FBI’s Securities Program Coordinator, David Chaves, at this year’s Anti-Money Laundering and Financial Crimes Conference.  Join us to hear the practical guidance on implementing effective compliance programs and law enforcement techniques to address money laundering and other financial crimes. Stay tuned for additional speaker and program announcements!

Mark Your Calendar: 2015 Insurance- and Risk-Linked Securities Conference, Mar. 3-4, NYC
The SIFMA Insurance- and Risk-Linked Securities Conference (IRLS 2015) will feature industry experts, sponsors and institutional investors discussing this growing and evolving market place, product design and innovation, and emerging trends. Join us to learn about the expanding opportunities in a market that is set to have a record year, risk management strategies, and how regulatory changes and other related factors will affect the industry in 2015. Early bird rates are now available!

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