FSB proposes recommendations to address systemic risk from asset management activities

SRspinner
The Financial Stability Board (FSB) has consulted on policy recommendations for addressing structural vulnerabilities from asset management activities. This follows a long debate at international level involving both the FSB and the International Organization of Securities Commissions (IOSCO). The FSB’s proposed recommendations relate to risks arising from liquidity mismatch, leverage, operational issues in transferring investment mandates in stressed conditions, and indemnifications related to securities lending.

Continue reading

Posted on 20/07/2016 | 0 Comments

A vote to leave the EU | Considerations for financial services firms

A Vote to leave EU_730x355

The UK has voted to leave the European Union (EU). Uncertainty in financial markets and among the business community is understandably very high. Today, there are many more unknowns than knowns – especially about how financial services firms operating in the UK will access and trade with the EU’s Single Market in future.

Continue reading

Posted on 24/06/2016 | 0 Comments

A smart approach to reporting

Hybrid Programme Delivery_730x355

The introduction of multiple reporting requirements under different regulations and on different timelines should prompt banks and investment firms to think strategically when implementing regulatory changes and when improving existing reporting processes. In particular, they should consider the potential overlaps and synergies across these reporting requirements, assess the capabilities of their current practices and IT infrastructure, and work out how they can capitalise on the use of reporting data for their own purposes.

Continue reading

Posted on 16/06/2016 | 0 Comments

Too-big-to-fail | Can it be tackled?

  TooBigToFail_730x355px

Despite the many years that have passed since the global financial crisis, its causes and consequences continue to demand attention from industry and policymakers alike.

Continue reading

Posted on 15/06/2016 | 0 Comments

Senior Insurance Manager Regime | Gaining Assurance

SIMR_730_355

The Senior Insurance Managers Regime (“SIMR”) is high on the agenda for many insurance companies’ Audit Committees, with directors looking for assurance on whether this key regulation has been successfully implemented and embedded.

Continue reading

Posted on 13/06/2016 | 1 Comments

Enhancing Pillar 3 | EBA Proposes New Liquidity Disclosure Requirements

LiquidityDisclosure

The European Banking Authority (EBA) launched a consultation on new liquidity disclosures on 11 May. In particular, the EBA is proposing that banks disclose their Liquidity Coverage Ratio (LCR) figures at least annually.

Continue reading

Posted on 3/06/2016 | 0 Comments

More Pillar 2 on the way | Basel finalises standards for Interest Rate Risk in the Banking Book

IRRRBB

The Basel Committee on Banking Supervision (BCBS) published finalised revisions to the standards for assessment of Interest Rate Risk in the Banking Book (IRRBB) on 21 April 2016.

Continue reading

Posted on 3/06/2016 | 1 Comments

Is Basel driving banks down a one-way street?

ARA72N

In recent papers1, the Basel Committee (BCBS) has proposed a number of changes to the scope and use of internal modelled approaches.  Taken together, they represent a tectonic shift in banks’ ability to use internal models for regulatory capital purposes:

Continue reading

Posted on 28/04/2016 | 0 Comments

Management information on culture | Connecting the dots

163250710_getty_STIM-1400x350

Culture in financial services firms has moved towards the top of the agenda for regulators, investors and consumers in the wake of excessive risk-taking by some firms in the run-up to the financial crisis and a string of misconduct scandals.  Despite this, there can be a tendency on the part of some in the industry to see culture as “someone else’s problem”.  A Deloitte survey on culture in banking carried out in 2013 found that 65% of senior bankers believed there were significant cultural failings across the industry, while only 33% believed the same of their own bank. 

Continue reading

Posted on 27/04/2016 | 2 Comments

Cooling the buy-to-let spending spree | PRA proposes higher standards and capital charges for buy-to-let mortgage lending

Buy-to-let_Leading Image

The PRA published a Consultation Paper and draft Supervisory Statement on 29 March on more strict standards for buy-to-let lending. The proposals coincided with the FPC’s statement on macroprudential risks on the same day, which included concerns about the buy-to-let property market.

Continue reading

Posted on 21/04/2016 | 0 Comments

FCA publishes Business Plan | What to expect from the FCA in 2016-17

Bzi_foc_glb_ho_1050_hi
The FCA published its 2016-17 Business Plan on 5 April. The document is shorter and less detailed than in previous years, with only a brief Risk Outlook section, and makes limited announcements of new work. This may reflect the fact that the new CEO, Andrew Bailey, will not join the FCA until July, although as a member of the FCA Board, he will already have had an opportunity to influence the Plan. Like last year, the FCA has continued with its magic number of seven priority areas, rolling over five areas and prioritising two new areas – wholesale markets and the provision of advice.

Continue reading

Posted on 11/04/2016 | 1 Comments