13 October - 17 October 2014

Regulatory and Legislative Developments from Across the Globe

World View

Basel Committee Releases Draft Consultation on Revised Corporate Governance Principles
The Basel Committee on Banking Supervision released a consultative document on revised guidelines on corporate governance principles for banks. The guidelines strengthen guidance on risk governance, expand guidance and the role of boards of directors, emphasize the importance of boards’ collective competence, and recognize that compensation systems form a key component of the governance and incentive structure in risk-taking behavior. Comments are due by January 9, 2015.
Consultative Document | Press Release

BIS and IOSCO Issue Report on Financial Market Infrastructures
The Bank for International Settlements Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions issued a joint report on recovery of financial market infrastructures. The report provides guidance to financial market infrastructures (FMIs) such as central counterparties (CCPs) on how to develop plans to enable them to recover from threats to their viability and financial strength that might prevent them from continuing to provide critical services to their participants and the markets they serve.
Report | BIS Press Release | IOSCO Press Release

IOSCO Releases Draft Consultation on the Custody of CIS Assets
The International Organization of Securities Commissions released a consultation report on principles regarding the Custody of Collective Investment Schemes' Act. The report is aimed at gathering the views of investment managers, custodians, institutional investors and other parties on the development of a set of principles. Comments are due by December 10, 2014.
Consultation Report | Press Release

EC Adopts Delegated Acts under Solvency II and Capital Requirements Regulation
The European Commission adopted delegated acts on the liquidity coverage requirement and leverage ratio under the Solvency II Directive and the Capital Requirements Regulation. The acts are part of the ongoing calibration of the regulatory framework to ensure that it enables the financial sector to effectively support the real economy without threatening financial stability.
Liquidity Coverage Requirement | Leverage Ratio | Press Release

FSB Releases Guidance on Resolving Nonbank Financial Institutions
The Financial Stability Board released guidance on key attributes of effective resolution regimes for financial institutions. Four annexes set out guidance covering resolution financial market infrastructures, resolution of insurers, client asset protection, and information sharing for resolution purposes.
Guidance | Press Release

FSB Releases Draft Consultation on Critical Functions for Systemically Important Insurers
The Financial Stability Board released a consultative document titled “Recovery and Resolution Planning for Systemically Important Insurers: Guidance on Identification of the Critical Functions and Critical Shared Services.” Comments are due by December 15, 2014. The draft guidance is designed to support resolution planning for G-SIIs and other systemically important insurers by providing a framework for the identification of the functions and services that would need to be maintained in resolution consistent with the objectives of systemic stability and policyholder protection.
Consultative Document | Press Release

FSB Releases Framework on Regulation of Shadow Banking
The Financial Stability Board released a regulatory framework titled “Haircuts on Non-Centrally Cleared Securities Financing Transactions: Strengthening Oversight and Regulation of Shadow Banking.” The Framework aims to limit the build-up of excessive leverage outside the banking system and to help reduce the procyclicality of that leverage. Comments on the consultative proposal in Annex 4 are due by December 15, 2014.
Framework | Background Document | Press Release

Joint Committee Issues 2015 Regulatory Work Program
The Joint Committee, consisting of the European Securities and Markets Authority, European Banking Authority, and European Insurance and Occupational Pensions Authority, issued a Regulatory Work Program for 2015. The Work Program gives a high priority to consumer protection and cross-sectoral risk analysis.
Work Program | ESMA Press Release | EIOPA Press Release

EBA Announces 2014 EU-Wide Stress Test Publication Date
The European Banking Authority announced it will publish the 2014 EU-wide stress test results on October 26, 2014.
Press Release

EBA Issues 2015 Regulatory Work Program
The European Banking Authority issued a Regulatory Work Program for 2015, which provides a detailed breakdown of its main objectives and deliverables for 2015.
Work Program | Press Release



EBA Releases Draft Consultation on Regulatory Framework for Securitizations
The European Banking Authority released a discussion paper titled “Simple, Standard and Transparent Securitizations: Response to the Commission's Call for Advice of December 2013 Related to the Merits of, and the Potential Ways of, Promoting a Safe and Stable Securitization Market.” The work is the initial response of the Authority to the European Commission's call for advice on identifying a prudentially sound securitization market and its regulatory treatment, aimed at widening long-term funding opportunities for the European economy. Comments are due by January 14, 2015.
Discussion Paper | Press Release

EBA Releases Report and Opinion on Remuneration Practices and the Use of Banker Allowances
The European Banking Authority released a report on the application of the Capital Requirements Directive regarding the principles on remuneration policies of credit institutions and investment firms and the use of allowances. The report shows that some institutions have classified the so-called ‘role-based' allowances in a way that increases the fixed component of remuneration, which may impact on the limitation of the bonus cap. As a result of this analysis, the EBA issued an Opinion to the European Commission and EU competent authorities calling for supervisors to ensure that institutions' remuneration practices on allowances comply with EU legislation.
Report | Opinion | Press Release

EIOPA Releases Draft Consultation on Solvency of IORPs
The European Insurance and Occupational Pensions Authority released a consultation paper on further work on solvency of Institutions for Occupational Retirement Provision (IORPs). Comments are due by January 13, 2015.
Consultation Paper

ESMA Releases Updated Data on Credit Rating Agencies
The European Securities and Markets Authority released its latest set of semi-annual statistical data on the performance of credit ratings, including transition matrices and default rates from January 1, 2014 to June 30, 2014.
Data | Press Release

U.S. and U.K. Regulators Meet to Discuss International Cooperation In the Event of an SIFI Resolution
FDIC Chairman Martin Gruenberg hosted an exercise for the heads of the Treasuries and leading financial regulatory bodies in the United States and United Kingdom to further the understanding, communication and cooperation between U.S. and U.K. authorities in the event of the failure and resolution of a global systemically important bank.
FDIC Press Release | Bank of England Press Release

Andrew Bailey Speaks on Developments in Financial Regulation and Goals for the Future
Bank of England Prudential Regulation Authority Chief Executive Officer Andrew Bailey delivered a speech on the global regulatory framework, challenges facing the financial industry, and areas for improvement in regulatory endeavors at the Lord Mayor's Banquet in London.

Gabriel Bernardino Speaks on CROs
European Insurance and Occupational Pensions Authority Chairman Gabriel Bernardino delivered a speech entitled "CROs - How to Balance Twin Roles" at the CRO Forum's 10th Anniversary event in Bologna.

Mark Carney Speaks on Financial Regulation
Governor of the Bank of England Mark Carney delivered a speech entitled "Regulatory Work Underway and Lessons Learned" at the 29th Annual G30 International Banking Seminar in Washington D.C.

Sarah Dahlfren Delivers Speech on Global and Local Regulatory Environments
The Federal Reserve Bank of New York released Executive Vice President Sarah Dahlgren's speech entitled "Operating Global, Acting Local" at the Institute of International Bankers seminar on risk management and regulatory/examinations compliance issues in New York City.

Jacob Lew Speaks on Global Economic Policies
Treasury Secretary Jacob J. Lew delivered a speech on the global economy and policies at the International Monetary and Financial Committee Meeting in Washington, D.C. Lew commented on the economic recovery in Europe and Asia, and spoke in support of the 2010 IMF quota and governance reforms.

Timothy Massad Speaks on Financial Regulation and Cross-Border Harmonization
CFTC Chairman Timothy Massad delivered a speech on implementing and fine-tuning the financial regulations mandated by the Dodd-Frank Act and prioritizing cross-border harmonization at the Managed Funds Association in New York. Massad stressed that regulators must work together to make sure clearinghouses operate transparently and do not pose risks to financial stability.



GFMA & GFMA - Affiliate News & Events

October Events | Get Registered

  • Next Tuesday | EU Regulatory Symposium - October 21, NYC: The European Union regulations, EMIR and MiFID, will impact any U.S. businesses trading financial instruments in the European market or with European counterparties. Join AFME and SIFMA at the EU Regulatory Symposium on Tuesday, October 21 in NYC at the SIFMA Conference Center (120 Broadway) to discuss how U.S. firms can ensure their standards meet the new requirements, as well as how market participants can manage the challenges and risks coming down the line over the next couple of years.

Featured speakers: Darren Littlejohn, Managing Director, Goldman Sachs; Virginie Delaunay, Head of Financial Management and Optimisation, BNP Paribas; Stephen Sanders, Managing Director and Head of EMEA Regulatory Development,  J.P. Morgan Chase & Co.; Patrice Aguesse, Senior Technical Advisor, Autorité des Marchés Financiers; and more. Sign-up to attend or join us via webinar | Program (CLE Credit Available)

  • Two Weeks to Register: Earn 4.0 Ethics CLE Credits - SIFMA Seminar - Oct. 28, NYC: Are you looking for an opportunity to earn all your Ethic CLE requirements at one time? SIFMA and SIFMA’s Compliance & Legal Society are hosting an Ethics Seminar, on October 28th, to take a deeper-dive into the ethical issues impacting the financial industry. Join us in-person, or from the comfort of your own desk, and satisfy all your New York State CLE Ethics Credits requirements in one half-day seminar.  

 November Events | Sign-up Today

  • 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 – NYC, Nov. 10: SIFMA's 2014 Annual Meeting once again gathers the leaders of the financial services industry together with prominent policymakers and financial media. 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. Register Today

2015 Events | Register Today and Save

  • 2015 AML & Financial Crimes Conference: Feb. 24-25, NYC: Now in its 15th year, SIFMA's Anti-Money Laundering and Financial Crimes Conference is the only conference in the AML space tailored to broker-dealers and other members of the securities industry. Join to discuss the latest trends and developments in the AML space; obtain practical guidance for implementing effective compliance programs; and network with AML professionals in the compliance, audit and legal functions of firms from around the country.

  • 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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