Banking Systemic risk strengthening solvency and liquidity of
the bank strengthening the banks own funds: Basel III and CRD IV
remuneration: make it less short term to reduce systemic risk
crisis resolution systems Liquidity rules prepared in Basel
Slide 3
Orderly functioning of markets AIFMD Short selling Derivatives
Post trade in securities securities law further work on C&S
Mifid: market structure MAd, PD, TD reviews etc
Slide 4
Insurance Roll out of Solvency II, advice by CEIOPS Insurance
mediation Insurance guarantee schemes
Slide 5
Major regulatory reforms Banking Capital Requirements Directive
III/IV countercyclical buffers new capital requirements CEBS work
streams Crisis management in the banking sector: crisis
resolutionwith haircuts proposed by Comm. but Parl. proposals in
Germany DGS new style can we move to a European Fund? or a system
of mutual support by the existing funds
Slide 6
Major regulatory reforms Securities CRA changes approved:
direct supervision by ESMA AIFMD: approved ESAs: approved Short
selling: in Council Review of MAD, PD, TD and Mifid: consultation
Post trade: EMIR, European Securities law:ongoing Corporate
governance Financial Institutions: cons.closed later general
corporate governance Prips: consultation Audit: consultation
closed
Slide 7
Securities Derivatives identify the derivatives that should be
cleared general obligation to clear, unless taxed in own funds
organisation and safeguards for CCPs legal status: banks, who will
supervise TR: what has to be registered and what not? Supervision
US links: reciprocity Corporates: exempted if below floor
Slide 8
AIFM Broad scope: all managers of collective investment are
subject exc. banks, insurance (?) holding companies, family offices
Registration of the managers, not of the funds Passport for funds
by EU registered managers
Slide 9
AIFM Points of contention remuneration: similar to banks
depositary: with full restitution liability, but for sub
depositaries only for due diligence evaluator Conduct of business
rules on conflicts of interest Third country regime: very
complicated but no full access to third AIFM/AIF
Slide 10
Short selling applicable to all instruments Short sale also
derivatives if related to decrease of price sovereign bonds:
includes CDS Net short: Long minus Short of all kinds Obligations
disclosure at 0,2% to Supervisors,+ 0,1% of issued capital at 0,5%
to market
Slide 11
Short selling Sovereign debt net short uncovered position, no
relation with that St debt minimum threshold: to be fixed later,
variable Notification Applicable also outside the Union
Slide 12
Short selling permissible shorts only if: borrowed agreement to
borrow located pursuant to agreement Measures against late
settlement Buy-in procedures within 4 days: buy-in by CCP or
trading venue if non: cash compensation to buyer by CCP/trading
venue if not: daily payments to CCP or Trading venue Exemption for
market makers/primary markets
Slide 13
Short selling Significant fall in price exceptional power to
restrict for significant fall in prices 10% national decision but
coordination by ESMA including market making
Slide 14
Corporate Governance Consultation is closed: applicable to
financial institutions, later to all listed companies Supervisory
role of independent directors New role for shareholders Insurance
and asset managers: recent reforms: are these not enough?
Slide 15
CG in Financial institutions Limit number of mandates per
person: devote sufficient time Split Chairman CEO Diversity in
board, including gender diversity Compulsory evaluation Skill and
experience Risk- audit committees: 1 or 2? cross participation CRO:
stronger position Much attention to risk management and
controls
Slide 16
CG in Financial institutions Serious offences: to be reported
to the board? Whistle blowing Institutional investors: disclosure
voting practices Identification of shareholders and empty voting
Remuneration policies Involve shareholders and employees? Conflicts
on interest: how to deal with it Shareholders: long term investors
preferred
Slide 17
ESMA Regulation final 9 November 2010 not yet published Three
parallel authorities-agencies + ESRB Start 1 January 2010
Structure: similar to CESR: substantial powers with the national
supervisors Legal powers quite limited
Slide 18
Regulatory powers in AIFMD Level 1: Directive-Regulation in co-
decision Level 2: Delegation to Commission de facto advice of ESMA,
but proposal by Comm. subject to art 190 of TFEU call back by EP or
Council revocation of delegation of Council or EP
Slide 19
Regulatory powers in AIFMD Level 2 Delegated Acts art 290 TFEU
Proposal by ESMA for Regulatory Technical Standards and Endorsement
by Commission No Commission own initiative, except refusal to act
by ESMA Commission can endorse, refuse to endorse, modify,
substitute