22 September - 26 September 2014

Regulatory and Legislative Developments from Across the Globe

World View

Basel LogoBasel Committee Holds Meeting on Post-Crisis Reforms
The Basel Committee on Banking Supervision held a meeting to consider Basel III reform issues at the 18th International Conference of Banking Supervisors in Tianjin, China. Banking supervisors and central bankers representing more than 100 jurisdictions met to discuss a range of policy measures relating to the Basel Committee on Banking Supervision's post-crisis reform agenda. Participants also discussed the role of banking systems in promoting growth and making financial services safe so that they could support the real economy.
Press Release

BIS, IMF and FSB Release Letter to G-20 on Data Gaps
The Bank for International Settlements, International Monetary Fund and Financial Stability Board released their joint letter to G-20 Finance Ministers and Central Bank Governors addressing data gaps involving foreign currency exposures.  The letter broadly outlines the three organizations’ plans and reaffirms their commitment to advancing work on foreign exchange exposures.
Letter

FSB and IMF Release Report to G-20 on Information Gaps in Financial Regulation
The Financial Stability Board and the International Monetary Fund released their Fifth Progress Report on the Implementation of the G-20 Data Gaps Initiative. The report states that significant progress has been made in implementing the DGI recommendations during the past five years but further work is needed and is critical to reaping the full benefits of the work undertaken to date.
Progress Report | Press Release

FSB Releases Letter to G-20 on Financial Reform
The Financial Stability Board released Chairman Mark Carney's letter to G-20 finance ministers and central bank governors titled “Financial Reforms: Completing the Job and Looking Ahead.” The letter reports on progress toward financial reforms that G20 members committed to in 2008.
Letter

IMF Releases Working Paper on Cross-Border Lending
The International Monetary Fund released a working paper entitled "The Great Cross-Border Bank Deleveraging: Supply Constraints and Intra-Group Frictions." The paper shows that banks’ reductions in cross-border lending largely varies in line with markets’ prior assessments of banks’ vulnerabilities.
Working Paper

Agencies Publish Proposed Rule on Margin and Capital Requirements for Covered Swap Entities
The Federal Reserve, FDIC, OCC, FCA, and FHFA published in the Federal Register a proposed rule on Margin and Capital Requirements for Covered Swap Entities. Comments are due by November 24, 2014. This proposed rule implements sections 731 and 764 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which require the Agencies to adopt rules jointly to establish capital requirements and initial and variation margin requirements for such entities and their counterparties.
Proposed Rule

Joint Committee Releases Report on EU Financial Risks and Vulnerabilities
The Joint Committee, consisting of the European Securities and Markets Authority, the European Banking Authority and the European Insurance and Occupational Pensions Authority, released a Report on Risks and Vulnerabilities in the EU Financial System. The report states that promoting confidence in the European financial sector on a permanent basis will depend on a commitment to ambitious structural reforms being implemented across the continent.
Report | ESMA Press Release | EBA Press Release | EIOPA Press Release

European Supervisory Authorities Appear Before European Parliament
The chairs of the three European Supervisory Authorities (ESAs) have appeared before the European Parliament’s Economic and Monetary Affairs (ECON) Committee to discuss progress in their respective organisations and of the Joint Committee of the ESAs. Andrea Enria, chairperson of the EBA, spoke about the importance of the single rulebook for banking as a part of securing supervisory convergence across the EU. Steven Maijoor, chairperson of ESMA, spoke about the implementation of the amended Markets in Financial Instruments Directive and Regulation and warned of the importance of ensuring proper resources were available to the ESAs to allow them to supervise and assess risk properly. Gabriel Bernardino, chairperson of EIOPA, spoke about the implementation of new guidelines for insurers in line with the single rulebook, Solvency II, and the progress of developing a common EU-wide stress test for insurers.
Enria Statement | Maijoor Statement | Bernardino Statement

EBA Releases Guidelines on Recovery and Resolution
The European Banking Authority released guidelines on the types of tests, reviews or exercises that may lead to support measures under Article 32(4)(d)(iii) of the Bank Recovery and Resolution Directive.  The EBA Guidelines specify that these tests, reviews, and exercises should have a specific timeline and scope, should provide a time horizon and reference dates, as well as a quality review process.
Guidelines | Press Release

EBA Releases Draft Consultations on Triggers for Early Intervention and Resolution
The European Banking Authority (EBA) launched today a consultation on two draft Guidelines on (i) the triggers for using early intervention measures (triggers for early intervention) and on (ii) the circumstances under which an institution shall be considered as ‘failing or likely to fail' (triggers for resolution). The deadline to submit comments is December 22, 2014.
Consultation on Intervention Triggers | Consultation on Resolution Triggers | Press Release

EBA Releases Consultations on Draft Implementing Technical Standards and Guidelines on Simplified Obligations
The European Banking Authority released two consultations on its draft Guidelines and Implementing Technical Standards (ITS) related to recovery planning, resolution planning and resolvability assessments under the Bank Recovery and Resolution Directive (BRRD). The Guidelines define how EU authorities should assess whether an institution is eligible for simplified obligations. The EBA will monitor any divergence of approach in the application of simplified obligations and will report accordingly to the European Parliament, the Council and the Commission.
Consultation on Draft ITS | Consultation on Simplified Obligations | Press Release

EBA Releases Draft Consultations on Resolution Tools
The European Banking Authority released two consultation papers on draft guidelines: 1) on the minimum list of services or facilities under Article 65(5) of Directive 2014/59/EU; and 2) on draft guidelines on the Sale of Business Tool under Article 39(4) and draft guidelines on the Asset Separation Tool under Article 42(14) of Directive 2014/59/EU. The documents aim at facilitating the implementation of resolution tools in the EU banking sector, and in particular at regulating the sale of business tool and the asset separation tool, as well as the transfer of an institution or its assets under any of the resolution tools. Comments are due by December 22, 2014.
Necessary Services Consultation | Asset Separation and Business Tools Consultation  | Press Release

ECB Issues Decision Setting on Separation of Monetary Policy and Supervision Functions
The European Central Bank (ECB) has issued a decision setting out how it will maintain autonomous decision-making and administrative functions for its supervisory and monetary-policy functions, in compliance with the Single Supervisory Mechanism Regulation. In addition the decision sets out the importance of professional secrecy and when and how confidential information can be shared between operatives working under the different functions. The executive board will have competence over all supervisory tasks, in consultation with the supervisory board.
Decision

EIOPA Releases Risk Dashboard on EU Insurance Sector
The European Insurance and Occupational Pensions Authority released its Second Quarter 2014 Risk Dashboard. The dashboard shows the risk environment facing the insurance sector remains broadly unchanged since the last EIOPA Risk Dashboard in June 2014.
Risk Dashboard

ESMA Releases Responses to Consultation Paper on Clearing Obligation
The European Securities and Market Authority released responses to its consultation paper on Clearing Obligation No. 2 on Credit Default Swaps.
Responses

FCA Holds Conference on MiFID II
The Financial Conduct Authority held a conference on MiFID II, including some of the changes in the EU directive and how they will impact investments firms. The conference included a number of presentations and panel sessions, bringing together our experts, representatives from ESMA, regulated firms and trade associations.
Press Release

FCA and PRA Release Draft Consultation on Remuneration Benchmarking and High Earners Data Collection
The Financial Conduct Authority and the Prudential Regulation Authority released a consultation paper on CRD IV: Data Collection on Remuneration Practices. This follows the EBA’s issuance of final guidelines in relations to data collection for high earners and remuneration benchmarking. Comments are due by October 17, 2014.
Consultation Paper | Press Release

PRA Issues Consultation Paper on Compliance with EBA Guidelines of Disclosure of Encumbered and Unencumbered Assets
The UK Prudential Regulatory Authority has published a consultation paper on its draft supervisory statement on the EBA’s guidelines for disclosure in relation to encumbered and unencumbered assets, in line with CRD IV. The proposals covered by the consultation paper include the PRA’s intention to waive the requirement to disclose template B of the EBA Guidelines for firms that meet at least one of three criteria. By waiving this disclosure requirement, the PRA is seeking to reduce the risk that firms’ compliance with the EBA Guidelines could enable the use or non-use of liquidity assistance to be deduced.
Consultation Paper

APRA Releases Discussion Paper on Disclosure Reforms
APRA has today released for consultation a discussion paper and draft amendments to Prudential Standard APS 110 Capital Adequacy (APS 110) and Prudential Standard APS 330 Public Disclosure (APS 330), which outline APRA's proposed implementation of new disclosure requirements for authorised deposit-taking institutions. The disclosures are in relation to: the leverage ratio; the liquidity coverage ratio (LCR); and the identification of potential global systemically-important banks (G-SIBs).
Press Release

ASIC and MAS sign World-First Memorandum of Understanding on Authorities' Access to OTC Derivatives Trade Repository Data
The Australian Securities and Investments Commission (ASIC) and the Monetary Authority of Singapore (MAS) have entered into a Memorandum of Understanding (MOU) to allow trade repositories licensed in one jurisdiction to provide relevant data to the authority in the other jurisdiction.
Press Release

Treasury's Jacob Lew Speaks on Financial Reform
U.S. Treasury Secretary Jacob Lew delivered a speech on eliminating the risk of too big to fail firms and working to ensure a safer global financial system at the European Commission and European Central Bank G-20 Press Conference in Cairns, Australia.
Speech

FDIC's Martin Gruenberg Speaks on Risk Management
FDIC Chairman Martin J. Gruenberg delivered a speech on interest rate risk, credit risk management and cybersecurity at the American Banker Regulatory Symposium in Arlington, Virginia.
Speech

CFTC's Christopher Giancarlo Speaks on Derivatives Markets
CFTC Commissioner Christopher Giancarlo delivered a speech on the challenges facing the cross-border derivatives market and the importance of greater cooperation among international regulators at the Global Forum for Derivatives Markets in Geneva, Switzerland.
Speech

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GFMA & GFMA - Affiliate News & Events

SIFMA FATCA Policy Symposium – Oct. 6-7, Washington, DC
Hear from and interact with key government officials and industry experts on topics of interest to U.S. and foreign bank executives involved in the FATCA implementation process. Top speakers include Capitol Hill veterans who have worked on FATCA and numerous other tax compliance measures. Dean A. Zerbe, National Managing Director of alliantgroup and former Tax Counsel for the Senate Finance Committee, and Mary Baker, Government Affairs Advisor of K&L Gates, will discuss the prospects for this legislation and similar legislation that Congress may consider to enhance offshore tax compliance in the coming year.
Register today

Program Available: Securities Financing Transactions Conference – Oct. 7, NYC
SIFMA will host leading industry experts – including keynote speaker Simon Potter, Head of the Markets Group, Federal Reserve Bank of New York – to share perspectives on the SFT market and regulatory landscape. This half-day conference will discuss the state of the market before the financial crisis; actions taken by the industry and regulators to enhance the resiliency of the repo, sec lending and prime brokerage markets; and the future direction of the industry. Topics to be covered include: Tri-Party Repos, Shadow Banking and Capital Ratios.
Register Today

ASIFMA Annual Conference 2014: Developing Asia’s Capital Markets – Nov. 5-6, 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: Program Sneak Peeks – Nov. 10, NYC
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

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 to address money laundering and other financial crimes; and network with AML professionals in the compliance, audit and legal functions of firms from around the country, as well as various service providers and key AML regulatory and law enforcement professionals.
Register Today

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!
Register Today

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