Welcome to the first - though bumper - edition of our new CPD weekly e-mail spanning developments over the summer

What is this e-mail about?

(Full description) It is designed to keep you "knowledgeable and competent" in accordance with ESMA's Guidelines (details) to implement MiFID II. We update you on EU-level developments in regulation, market structure, economic figures and events that may influence investment products marketed by your firm. This is NOT investment research attempting to forecast security prices.

Content

We select articles from our database to produce a a "10-minute Read 'n Verify" e-mail of about 1500 (normal maximum 2000) words per week. Each article has a link that enables you to drill down into more detail - depending on your corporate subscription level. Moreover, you can browse our website - subject to your subscription - to broaden your understanding of a subject. or set up a personalised alert.

Verify

The Verify test enables you to check your comprehension of our choice of the top three issues this week.

1. European Commission consultation on post-trade in a Capital Market Union: dismantling barriers and strategy for the future

2. POLITICO: UK’s data flows under EU surveillance

3. GDP up by 0.6% in both the euro area and the EU28

At the foot of this e-mail is a link to a multiple choice test and you can use a "100% success" on the three questions to verifiy 10 minutes of CPD to your employer and/or professional qualification body.

Jump directly to articles on:- Banking Union Capital Markets Union Clients Union Market Abuse Market Structure Insurance Asset Management Corporate Governance/Accounting Financial Services Policy Political Financial Economic       About this email

Articles from 28 July 2017 - 08 September 2017

Banking Union     IMF: More action needed on European bank profitability European banking has made considerable progress in the past few years: Banks have built up capital, regulation is stronger and supervision has been enhanced. But profitability remains weak, posing risks for financial stability, the latest Global Financial Stability Report states.  View Article EBA reports show that banks funding plans paint an optimistic outlook for growth whilst NPLs remain a drag on EU banks new lending The reports aim to provide important information for EU supervisors to assess the sustainability of banks' main sources of funding. The results of the assessment show that banks plan to increase their lending and to expand deposits as well as market based funding.  View Article EBA publishes final technical standards on MREL reporting by resolution authorities The EBA published its final draft implementing technical standards specifying templates and procedures resolution authorities should follow when informing the EBA of the minimum requirement for own funds and eligible liabilities (MREL) that have been set for institutions under their jurisdiction.  View Article Deutsche Bundesbank: Failing or likely to fail? Putting the European banking union to the test Deutsche Bundesbank's Andreas Dombret addresses the question of whether the European banking union actually works by examining four recent examples of institutions running into difficulties in the European banking sector.  View Article Consultative document on the implications of fintech for banks and supervisors issued by the Basel Committee The BCBS released a consultative document on the implications of fintech for the financial sector. The document assesses how technology-driven innovation in financial services, or "fintech", may affect banks and supervisors.  View Article Financial Times: Tighter EU curbs urged on winding down banks Europe’s top official in charge of winding down failed banks has urged the EU to tighten restrictions on when governments can pump money into stricken lenders, in response to recent cases in Italy where senior bondholders were spared losses.  View Article     Capital Markets Union     European Commission consultation on post-trade in a Capital Market Union: dismantling barriers and strategy for the future The consultation discusses the main trends and challenges faced by post-trade services providers and their users, and seeks to determine the existence and scale of remaining or new barriers, the risks associated with such barriers and the best ways to address them.  View Article ISDA: Brexit – CCP location and legal uncertainty The vast majority of EU clearing currently takes place in London, but there are suggestions that EU regulators might introduce a location policy for euro-denominated swaps to be cleared in the EU.  View Article EurActiv: The Capital Markets Union can deliver Europe a sustainable future The European Commission’s mid-term review of the Capital Markets Union Action Plan shows it is serious about sustainable finance, but more remains to be done, write Christian Thimann and Steve Waygood.  View Article Financial Times: MiFID vies with Brexit as City traders’ main problem The arrival in January of MiFID II, sweeping European legislation that aims to inject greater transparency and reinforce investor protections, is looming uppermost for many trading entities in London.  View Article     Clients Union     EIOPA: European Supervisory Authorities publish Q&A on the KID for PRIIPs The European Supervisory Authorities published further guidance on the requirements for Packaged Retail and Insurance-based Investment Products laid down in the European Commission's Delegated Regulation 2017/653.   View Article Financial Times: UK assures on ‘close’ EU data protection laws after Brexit Britain is pushing to closely mirror the EU’s data protection laws after Brexit, in a bid to ensure the free flow of data across borders which is vital in underpinning the digital economy.  View Article POLITICO: UK’s data flows under EU surveillance The UK’s beefed-up surveillance law — the Investigatory Powers Act, which came into force at the end of last year — seems to violate EU fundamental rights and will cause problems for any eventual arrangement on data flows post Brexit.  View Article     Market Abuse     ESMA updates Q&A on MAR ESMA updated its Questions & Answer document regarding the implementation of the Market Abuse Regulation.  View Article     Market Structure     EFAMA supports conclusions of the European Post Trade Forum (EPTF) report EFAMA welcomes the launch by the European Commission of a public consultation to seek views on remaining barriers in post-trade markets in the context of the Capital Market Union.   View Article ESMA publishes the responses to its Consultation on trading obligation for derivatives under MiFIR ESMAs published the responses received to its Consultation on trading obligation for derivatives under MiFIR.  View Article     Insurance     EIOPA’s Risk Dashboard – first quarter 2017 - shows relative stable risk exposure of the European Union insurance sector The European Insurance and Occupational Pensions Authority (EIOPA) published its updated Risk Dashboard based on the first-quarter 2017 data. The Risk Dashboard presents EIOPA's quarterly risk assessment of the European Union insurance industry.   View Article     Asset Management     Hedgeweek: Why 2017 must be the year of compliance. Part 1: GDPR There are two major pieces of legislation coming into effect in early 2018, which will affect alternative investment firms in the UK, and firms worldwide who are holding data on European citizens, or trading with firms in the EU.   View Article Investment & Pensions Europe: Schemes 'unprepared' for incoming EU data laws Pension trustees feel “out of their depth” on data protection and cybersecurity issues, according to a recent survey.  View Article     Corporate Governance/Accounting     EBF response to the FSB consultation on sound compensation practices The European Banking Federation has responded to the consultation of the Financial Stability Board on “Supplementary Guidance to the FSB Principles and Standards on Sound Compensation Practices.”  View Article     Financial Services Policy     EBA publishes a Discussion Paper on its approach to FinTech FinTech has the potential to transform the provision of financial services. For this reason, public authorities in the EU and beyond have started to investigate the impact FinTech is having on the financial system and its regulation and supervision.  View Article     Political     Financial Times: Macron backs proposal for cohort of pan-EU MEPs France is backing pan-EU lists of candidates for seats in the European Parliament as President Emmanuel Macron seeks to counter the rise of populist parties tapping into growing public hostility towards the bloc.  View Article Bertelsmann Stiftung: Germans are more optimistic about their future than their European neighbours The refugee crisis, Brexit, growing populism – recently there has been a spate of events and trends that have completely transformed the political landscape in Europe. But in Germany, these changes predominantly seem to be fostering the need for stability, as shown in the new "eupinions" study.   View Article     Economic     GDP up by 0.6% in both the euro area and the EU28 Seasonally adjusted GDP rose by 0.6% in both the euro area (EA19) and the EU28 during the second quarter of 2017, compared with the previous quarter, according to a flash estimate published by Eurostat.  View Article

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