Archives: Financial Services Regulation – UK/EU

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Radical plans to replace Financial Services Authority fall behind schedule

The government is today warned against pushing through its plans to abolish the Financial Services Authority (FSA) as it emerges that the Treasury will struggle to complete its radical overhaul of the regulatory system until 2013. However, it is unlikely that the plans to abolish the FSA will be overturned at this late stage. The Coalition are firmly … Continue Reading

EBA’s new round of stress tests

Confidence appears to be rising again with the European banks.  Euro overnight bank lending rates appear to be normalising and banks are no longer holding as much money with the European Central Bank (ECB) above reserve requirements.  Indicators are that banks have started to lend to each other again which could lead to the ECB … Continue Reading

Banks could leave Europe over regulation, warns Goldman Sachs chief Lloyd Blankfein

Lloyd Blankfein has caused a furore amongst the City banks, by warning that onerous regulation in Europe could force banks to looks for more welcoming homes outside of the EU. Goldman were then forced to clarify Blankfein’s statement, noting that “contrary to some news reports, we have no intention of quitting Europe.” However, according to … Continue Reading

Summary of EC Review of the Markets in Financial Instruments Directive (Directive 2004/39/EC) (“MiFID”) for Commodity Firms

MiFID has been in force since November 2007 and is currently under review by the European Commission (the “EC/Commission”).   The Commission issued a consultation paper on 8 December 2010 (the “Consultation Paper”) on possible amendments to MiFID, which will be open for comment by market participants, regulators and other stakeholders until 2 February 2011.  A … Continue Reading

EU Stress Testing

The results of the European Union-wide stress testing of banks were announced recently, with 91 banks (including 27 in Spain) tested. Seven (including five Spanish cajas) failed, requiring a combined bank capitalisation of €3.5bn. The purpose of the tests was both to create more confidence in the soundness of European banks, with the hope of … Continue Reading

Credit Ratings Agencies – Recent Regulatory Developments and Structured Products

This post was also written by Sebastian Barling. The aftermath of the credit crunch and U.S. house price collapse between 2005 and 2007 saw considerable criticism levelled against credit rating agencies (CRAs) for their rating of various structured finance instruments. Following on from this criticism, the International Organization of Securities Commission (IOSCO), in conjunction with … Continue Reading