9th February 2017

BBA Brief – 9 February 2017

European Commission considering options for UK access to EU financial markets

Valdis Dombrovskis, the European Commission’s Vice President responsible for financial services, has said that the City will continue to be  a global financial centre after Brexit. Speaking to City AM (p1), he said the European Commission, is “looking at equivalence” and asking firms to establish, “substantial presences in the EU to maintain EU passporting” to ensure that the UK will retain access to EU financial markets.

Bank of England warns on risks of global fragmentation of regulatory standards

BBC News (online) reports that Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, has warned that moves to reduce regulation introduced after the 2008 financial crisis could undermine financial stability, commenting that, “in order to have a resilient financial sector and consistent regulation internationally we need international standards.” Sky News (online) summarises recent proposed changes to US banking regulation, noting that it would be impossible to come up with meaningful international rules on bank capital without the US.

Sir Mervyn King calls for hard Brexit

Former Governor of the Bank of England, Sir Mervyn King, has called for a hard Brexit, saying that the UK’s decision to leave the EU offers “real opportunities” for economic reform and that the UK would be better off if it also left the customs union (The Daily Telegraph, £, B1). He attributed the result of the referendum to the UK’s political system, which he said “does not give people a chance to vote on issues they really care about.”

Latest from the BBA

Rob Driver, BBA Capital Markets Policy Director, blogs on target market criteria designed to increase investor protection that will be introduced under MIFID II.

Jacqueline Planner, Huntswood’s Director of Financial Crime blogs on how banking institutions can develop effective financial crime risk assessments.

Friday 10th February – BBA workshop: Individual accountability under GDPR: What does it mean to you? The BBA and  Henley Business School have created a 3 hour interactive workshop for senior managers to help the understand what they and their banks need to take in order to prepare for the incoming General Data Protection Regulation. To book your place click here.

Tuesday 21st February – BBA webinar:  How vulnerable is your mobile data? How and why hackers are targeting banks The explosion of billions of mobile devices has created the largest technology footprint for hackers to steal corporate and personal data – but hackers know your vulnerabilities and are moving fast. Join us in this FREE 1 hour webinar with BBA associate member Intercity Technology to discover how your firm can improve its security as well as enforce regulatory compliance. To register click here

Tuesday 28th February – BBA Workshop Directors Guide to Surviving a Regulatory Visit

The BBA is hosting a workshop to help senior managers and directors understand what to expect when the regulator comes knocking. This 2.5 hour workshop will help determine how ready your firm is for a PRA/FCA visit To register click here.

Today’s diary

CMA statutory deadline for retail banking market investigation remedies implementation

Bank of England publishes Agents’ Summary of Business Conditions

EBA consultation on authorisation standards for credit institutions closes

UK Parliament rises for recess today and will return on 20 February

Latest from our sponsor Jaywing

Chris Rollason, Senior Risk Consultant blogs on the operational impact of IFRS 9 and how it will change banks’ longer date revolving credit offering.

Stat of the day

2.2% – expected fall in average pay settlements in 2017, compared to last year (Bank of England).

News in brief

The Bank of England has predicted that business investment will rise this year, based on a survey of 700 companies across the UK, driven by consumer spending and higher export orders (Financial Times, £, p2).

Accenture has developed new  technology to protect blockchain passwords and digital keys, which is expected to help financial services firms use blockchain more securely (Reuters, online).

The European Parliament’s lead Brexit negotiator, Guy Verhofstadt  has said that the European Union needs to reform or it risks disappearing completely (The Independent, online only).

John Van Reenen, a professor of applied economics at the MIT Sloan School of Management, has said Brexit could reduce the UK’s GDP by up to 9.5% (Bloomberg, online).

The Royal Institution of Chartered Surveyors has predicted that rents will rise faster than house prices over the next five years, driven by tax changes that could reduce the number of properties landlords make available (BBC News, online).

The Independent (online only) reports that the number of financial sector professionals in Britain and continental Europe looking for jobs in Ireland has increased by 55% in the 8 weeks following the result of theUK Referendum on the EU.

The FCA will review open ended funds’ use of property and other illiquid assets, following temporary closure of many funds that held property investments after Brexit (The Daily Telegraph, £, B3).

What the commentators say:

Writing in The Daily Telegraph (£, B2), James Quinn notes that banks branch closures reflect changing trends in the way they’re used, citing data from one bank which recently closed branches that were used by less than 200 customers a week.

The Financial Times editorial (£, p10) leader writer comments that President Trump’s administration has launched a number of “wrong headed” suggestions of currency manipulation which attempt to solve a non-existent problem, warning that this poses a serious risk to the strength of the global trading and monetary systems.

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