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Summer holidays from today … back on 9th September! I wish all my readers Happy Holidays – wherever you are allowed to go!

Why not try our new service? Brexit and the City - the Impact

"Brexit has ended the Golden Age of the City" video with Federal Trust Director Brendan Donnelly

Brexit and the City of London: April 2021 Video Update

Contact Details:

To request more information please call +44(0)1424 777123
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enquiries@grahambishop.com

 

Welcome to Graham Bishop.com

Our new service "Brexit and the City - the Impact" builds on the popularity of my series of videos about the impact of Brexit on "the City" - shorthand for the financial services industry throughout the UK.

Details are here

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After this week, we will be breaking for the summer so the next Grid will be on 6 September. We wish you a happy and safe summer.In

the meantime, I have just published - with the Federal Trust - another of my videos on "Brexit: the Impact on the City". This one is entitled “Brexit has ended the Golden Age of the City of London.” In early September, I will publish an update of the current situation.

In this video, I discuss with the Director of the Federal Trust, Brendan Donnelly,  the Chancellor of the Exchequer Rishi Sunak's recent Mansion House speech.

The speech acknowledges the importance of financial services for the British economy. But it gives little hope that the British government will be able to prevent the decline of the sector as a consequence of Brex

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June 23rd: 174th Brussels 4 Breakfast

Why you should watch:  The top agenda item in Brussels and for our panel is the ESG agenda - particularly the so-called 'taxonomy' and the pilot exercise for stress-testing banks on climate risk (and not just banks; insurers and corporates will be caught too). Other than that, our regular panel focused this month on the EU's Next Generation Fund (is it a 'one off' or a sign of the Commission's ambitions?), CMU (has the pandemic pushed it down the agenda?), the CCP stress tests (and what they say about Commission movies to shift clearing houses out of London), Germany's continued opposition to central banks stuffing themselves with home country debt (that's you, Italy), and the latest opinion polls in the UK indicating that (whatever they now think of Brexit) a majority is in favour of staying out.

 

 

Moderators: Andrew Hilton (Director, CSFI) 

 

Panellists:

 

Graham Bishop is one of the UK's leading commentators on EU financial regulation. He is also chairman of the National Council of the European Movement, and was, for many years, senior European bond analyst at Citigroup

 

Andreas Dombret is a former Executive Board Member at the Bundesbank, responsible for banking and financial supervision. He is also a former Board member at the BIS, a former Vice-chairman of BofA's investment bank for EMEA, and a former partner at Rothschild & Co. Currently, he is Chairman of Houlihan Lokey (a Los Angeles-based investment bank) for Germany, Austria and Switzerland, a senior adviser to Oliver Wyman and Sumitomo Mitsui, and an adjunct scholar at Columbia. He is also an honorary professor at ESB University in Wiesbaden.

 

Pablo Portugal is a managing director at the Association for Financial Markets in Europe (AFME), where he is responsible for regulatory developments and advocacy across Europe in banking and financial markets. He is also a Board member of the European Capital Markets Institute.


GrahamBishop.com provided a rich list of topics for the meeting - but of course we were not able to discuss them all as we ran out of time - as usual!

Brexit: Curtice opinion poll: now Remain 53%, Leave 47% BUT Rejoin 48%, Stay out 52%; Reuters: Britain takes step to classifying 'green' investments: Britain has set up a group of experts to help it classify climate-friendly assets; City of London Corporation: Data, Direction, Dialogue: UK and US have an opportunity to collaborate; Bloomberg: ECB Probes Whether Goldman, Peers Still Too Tied to London: ECB concerned about reliance on back-to-back booking model

General: Switzerland breaks off talks with EU; Commission set to borrow €80billion this year and first issues 10 time over-subscribed; Tax transparency deal approved – country-by-country reporting

Banking: POLITICO: Germany says nein to eurozone banking safeguards; Non-Performing Loans (NPLs): Co-legislators agree on new rules in order to improve market transparency; FSB seeks feedback on its proposals for quantitative targets for enhancing cross-border payments

Capital Markets Union: ESMA launches 2021 Central Counterparties Stress Test; DG FISMA: Staff working document – Monitoring progress towards a capital markets union: a toolkit of indicators; ESMA responds to European Commission consultation on the ESAs

Insurance: Reuters: The European Commission said it is too early for a cross-border pandemic insurance scheme to fill the gap left by insurers following the outbreak of Covid-19

ESG: EBA publishes results of EU-wide pilot exercise on climate risk; FT van Steenis: Investors should prepare for impact of green stress tests on banks; Sustainable corporate governance - Continuing flow of comments on Taxonomy Article 8; Eurosif expects new EU sustainable finance strategy at the start of July

Digital: European Commission’s proposal of a Digital Markets Act – EBF Key messages; Commission proposes a trusted and secure Digital Identity for all Europeans; CER: Can the EU set a global rulebook for Big Tech?


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June 4th: Financial Services Club/ZYen video with Alderman Mainelli and Graham Bishop: Brexit: Ending the City's Dominance of European Finance?


How might this play out by say 2024? Could the divergence cause the end of the City’s dominance of European finance? It might well do.

The future of the financial services industry – centred in the City of London – matters enormously to the health of the United Kingdom’s economy. The Trade and Co-operation Agreement (TCA) has few provisions on financial services and the UK now appears set to drive a wedge between EU and British rules so it can “benefit” from its new-found Brexit freedom. In reality, this “wedge” is unlikely to benefit the economic prospects of the City or the United Kingdom.

There can be no doubt that the EU will use the “autonomy of its decision-making process” – as stressed in the TCA. If the UK wishes to row alongside the EU super-tanker and “take” its rules, then the UK will remain “equivalent”. But current UK policy intentions suggest there will be an ever-widening gulf by the end of this Commission’s term in 2024 – as the logical outcome of UK policy. The internationally mobile financial services industry will undoubtedly take account of this probability in planning the location of future business opportunities.

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About GrahamBishop.com

Graham Bishop's analysis targets the interaction of the driving forces of politics and economics as they force the required changes in financial regulation – at the macro level - rather than covering the micro aspects of detailed implementation. These are precisely the topics where a well-informed financial professional should remain competent:  it can form part of their Continuing Professional Development (CPD).

Banking union and capital markets union are already underway, but obstacles remain and consumer protection is a necessary conditon for success.

The next big project – enhancing the international role of the euro – is only under discussion but the EU is seeking to neutralise any “weaponising” of the dollar

Environmental, Social and Governance (ESG) policies are a key priority for the new Commission – with a European Green Deal planned within its first 100 days. But “sustainable finance” goes beyond “green” and includes social considerations as well as the governance that brings it to the forefront of financial decision-making.

The Fin Tech Action Plan will help the financial industry make use of the rapid advances in technology such as blockchain and other IT applications and strengthen cyber resilience. The impact on payment systems will be at the cutting edge.


 

Access our insights

As a `Friend of GrahamBishop.com' you can easily `scan the horizon’ for politics and economics driving regulatory reform of European financial markets by  joining the 'Brussels' Finance Watchers community

for full details, click: Standard service   Gold service





His proposal for a Temporary Eurobill Fund is one of the range of options in this study. His proposal offers a modest, technical but concrete step that can be expanded progressively into a financial, economic and political structure if circumstances develop propitiously. This author has developed the TEF plan over several years and has comprehensively updated it in the form of “30 FAQs”. Click to download.



Consultancy Financial Services Deepening EMU Education and Learning

MiFID II has been in force since 2018 and requires many investment professionals to be knowledgeable and competent - by holding a qualification; having proper experience; verifying that they undertake Continuing Professional Development (CPD) and that firms record all this for their Competent Authority.

GrahamBishop.com offers access to our CPD programme via our `Friends' services - with  structured and unstructured CPD products. These services are extremely cost-effective for CPD purposes: Our Standard service provides 6 hours of structured CPD at €20 per hour and the Gold service gives a total of 10 hours at €24 per hour. Details

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