The provisions on the trading book of CRD III will start applying mid-2011 and not as initially scheduled for early 2011, Director General Jörgen Holmquist said explaining the EC work programme on financial services and referring to an agreement between Commissioner Barnier and Geithner.
Speaking at the AFME conference, Jörgen Holmquist, Director General, DG Markets, European Commission, explained the EC working programme on financial services. The Commission wants to fully implement the G20 commitments, he stated. As regards CRD III, he said that Barnier and Geithner have agreed that the provisions on the trading book will start applying mid-2011 and not as initially scheduled for early 2011.
There are also many things on the EC pipeline which includes:
· Framework on cross-border crisis management resolution regimes
· OTC derivatives regulation
· Deposit Guarantee schemes
· CRD IV
· MiFID review in early 2011
· EC report on the state of play of measures taken by Member States regarding remuneration.
He also stressed that there are several challenges that policymakers are facing:
· Right balance between overregulation and under regulation
· Coordination action at a global level, particularly with the US but with other partners too
· The industry must take a constructive approach to all the regulatory reform and contribute to the debate by not only criticizing but also adding solutions. The industry also need to look into detail at its risk management and its internal control of government structures.
· More robust supervision
Concerning the transatlantic dialogue, Mr Holmquist believes that in overall terms there are more convergence than divergence. He mentioned that Barnier is meeting Geithner quite often and both sides understand the needs of each other. He also said that Patrick Pearson as well as Mario Nava go to the US quite often to discuss the state of play at both sides.
CFO Air France Marc Verspyck, had concerns on the timing of the regulatory reform on financial markets. The industry does not know what the real implication of all the proposals will be. He agrees that OTC regulation is needed, however a non-financial corporate exemption should be allowed. He also said that Air France will have no problem at all to reveal all the data required by the supervisors in the future if needed always respecting confidentiality.
CESR Chairman Eddy Wymeersch, focused his speech on corporate governance of financial firms. He hopes that the EC in the future will propose bindings rules on this area.
© AFME
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