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(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 of content 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.

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

1. September 2017: Economic Sentiment continues to rise in the euro area and the EU
2. ECMI - Capital Markets, Debt Finance and the EU Capital Markets Union: A law and finance critique
3. ESMA updates its MiFID II Q&As

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 Market Abuse Asset Management Corporate Governance/Accounting Financial Services Policy Graham's Articles, Comments & Speeches Political Financial Economic           About this email

Articles from 28 September 2017 - 05 October 2017

Banking Union     ECB reinforces its NPL guidance for banks The ECB launched a public consultation on a draft addendum to the ECB guidance on non-performing loans. The addendum supplements the guidance which was published on 20 March 2017 and reinforces the guidance with regard to fostering timely provisioning and write-off practices.   View Article EBA and US agencies conclude framework cooperation arrangement on bank resolution The Framework Cooperation Arrangement lays out the basis for subsequent cooperation arrangements on bank crisis management and resolution between any of the EU Supervisory or Resolution Authorities and any of the participating US Agencies.   View Article ISDA: Proposed moratoria under the BRRD and the impact on the Universal Stay Protocol New moratoria powers under the Bank Recovery and Resolution Directive proposed by the European Commission could trigger opt-out rights for entities that have adhered to the ISDA 2015 Universal Resolution Stay Protocol. This paper considers the implications for European Union financial institutions.  View Article The Bank of England's approach to resolution The Bank has published an update to its approach to resolution, first published in 2014. This new publication explains the key features of the UK resolution regime – including the Bank’s statutory responsibilities and powers, and how the Bank would be likely to implement a resolution.   View Article BIS: Avoiding “regulatory wars” using international coordination of macroprudential policies Using macroprudential policies (MaPs) following systematic countercyclical rules reduces volatility and contributes to financial stability, growth and investment. These remarks are meant to show how this process occurs, its importance for global stability and a last but much needed “new lesson”.   View Article BIS: Central banks propose strategy to improve the security of wholesale payments The consultative document, Discussion note - Reducing the risk of wholesale payments fraud related to endpoint security, aims to help focus industry efforts to tackle the increasing threat of wholesale payments fraud.  View Article     Capital Markets Union     Commission backs greater European Central Bank regulatory powers for clearing systems to fulfil its monetary policy responsibilities The European Commission issued a favourable opinion on the ECB's recommendation, in which the ECB asked for a greater role in regulating clearing systems for financial instruments, for example with regard to central counterparties (CCPs), by proposing to amend Article 22 of its Statute.  View Article EBA issues Opinion on the design of a new prudential framework for investment firms The Opinion includes a series of recommendations aiming to develop a single and harmonised set of requirements that are reasonably simple, proportionate and relevant to the nature of investment firms authorised to provide MiFID services and activities.   View Article ESMA updates its MiFID II Q&As The purpose of the Q&As is to promote common supervisory approaches and practices in the application of MiFID II and its implementing measures.  View Article ESMA publishes latest updates to MiFID II/MiFIR investor protection Q&As The new Q&As cover the topics of client categorisation, post-sale reporting, recording of telephone conversations and electronic communications, best execution, and information on costs and charges.  View Article Bloomberg: FCA’s Bailey says regulators eager to solve MiFID research snag Regulators are working to find a solution for asset managers and banks that will be stuck between US and European Union rule books when MiFID II takes effect in January, said Andrew Bailey, the UK Financial Conduct Authority’s chief executive officer.  View Article ESMA updates its EMIR and CSDR Q&As ESMA updated two of its guidelines regarding two pieces of post-trading regulation.  View Article ECMI - Capital Markets, Debt Finance and the EU Capital Markets Union: A law and finance critique Contrary to conventional wisdom, this paper contends that the excessive development of capital market finance has been one of the catalysts behind the crises and scandals that have unfolded over the past 15 years.  View Article     Market Abuse     ESMA updates Q&A on MAR ESMA updated its Questions & Answers document regarding the implementation of the Market Abuse Regulation.  View Article     Asset Management     EFAMA: UCITS equity funds attracted highest level of net sales since December 2015 The European Fund and Asset Management Association (EFAMA) has published its latest Investment Funds Industry Fact Sheet, which provides net sales of UCITS and AIF for July 2017. 29 associations representing more than 99 percent of total UCITS and AIF assets provided EFAMA with net sales data.  View Article Investment & Pensions Europe: IASB orders more research into controversial accounting rule changes The International Accounting Standards Board (IASB) has instructed its staff to carry out more research into its project regarding defined benefit (DB) surplus accounting rules.  View Article Investment & Pensions Europe: Alternatives trade body develops cost disclosure for hedge funds An industry body has developed a standardised figure for expenses and fees that it said would allow investors to better understand, compare and monitor costs across hedge funds and other alternative investment products.  View Article Investment & Pensions Europe: FCA to prep further consultation on transparency in asset management The UK’s financial services regulator has outlined plans to consult on transparency-related activity in the asset management industry in a further follow-up to its market study on the sector earlier this year.  View Article     Corporate Governance/Accounting     EBA: IASB post-implementation review of IFRS 13 Fair Value Measurement The EBA has commented on the IASB Post-implementation Review (PIR) of IFRS 13 Fair Value Measurement (IFRS 13).  View Article ECIIA: Cyber risk tops internal audit list Cyber risk was the most commonly cited threat by heads of internal audit across Europe regardless of nationality or business sector, according to a new report by ECIIA.  View Article FRC: Dividend disclosures improving The quality and quantity of dividend policy and practice disclosures has improved, according to a study “Disclosure of dividends –policy and practice“ conducted by the FRC’s Financial Reporting Lab (Lab).  View Article     Financial Services Policy     EFAMA statement on the European Commission’s proposals to review the European Supervisory Authorities (ESAs) EFAMA fully supports supervisory convergence as a crucial element in ensuring a successful CMU through supervision, and integral to removing barriers to cross-border provision of financial services.   View Article ALFI: Commission proposals could adversely impact investors, funding and the European financial markets Following the publication of the European Commission’s proposed amendment to the ESA Regulation to give more supervising authority to ESMA, EBA and EIOPA, ALFI expresses its surprise and concern about the new role for ESMA in the authorisation procedure of delegation arrangements.  View Article ESMA consults on Guidelines for non-significant benchmarks ESMA launched a consultation on Guidelines detailing the obligations which apply to non-significant benchmarks under the Benchmarks Regulation.  View Article FCA: Andrew Bailey speech on free trade in financial services matters In his speech Andrew Bailey, Chief Executive of the FCA, highlights that there can be lessons learned by putting the issues around Brexit into a historical context. Common regulatory standards are a necessary condition for free trade in finance.   View Article     Grahams Articles, Comments & Speeches     Graham Bishop presents his plan for a Temporary Eurobill Fund (TEF) at France Stratégie Graham presented his proposal, whose ‎characteristics are ‎similar to the mechanism described by the European Commissioner, and then discussed it with Jean-Pierre Landau and Yves-Emmanuel Bara, direction générale du Trésor.   View Article     Political     Bruegel: A Jamaican Germany is good for Europe A so-called Jamaica coalition of conservatives, liberals and greens is the most likely outcome, but many fear this will be bad for the EU and the Eurozone. Not so, argues Guntram Wolff.  View Article     Financial     Accountancy Europe: EU Business restructuring & insolvency Accountancy Europe has published a position paper which summarises the accountancy profession's views on the EU Directive on business restructuring & insolvency.  View Article     Economic     EC: Quarterly Report on the Euro Area (QREA), Vol. 16, No. 2 (2017) In this edition of the QREA, European Commission staff looks at the importance of sequencing and packaging structural economic reforms; the ease of doing business in the euro area; the determinants of trend TFP growth; and the macroeconomic implications of bank lending constraints.  View Article European Commission proposes far-reaching reform of the EU VAT system The reboot would improve and modernise the system for governments and businesses alike. Overall, over €150 billion of VAT is lost every year, and around €50 billion is estimated to be due to cross-border VAT fraud. It is estimated that this sum would be reduced by 80% thanks to the proposed reform.  View Article September 2017: Economic Sentiment continues to rise in the euro area and the EU In September, the Economic Sentiment Indicator (ESI) continued the upward trend prevailing since autumn last year, increasing by 1.1 points in both the euro area and the EU to levels last seen in the summer of 2007 (113.0 points in both regions).   View Article

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