Image: Title: McDermottNov. 25—Financial regulators in Britain fined Royal Bank of Scotland, National Westminster Bank, and Ulster Bank a combined £56 million last week for IT failings in the summer of 2012 that left customers without full access to ATMs, online payments, and other banking services. The joint enforcement action was the first of its kind for the U.K.’s Financial Conduct Authority and Prudential Regulation Authority. “The banks’ failures meant millions of customers were unable to carry out the banking transactions [that] keep businesses and people’s everyday lives moving,” Tracey McDermott, the FCA’s director of enforcement and financial crime, said in a statement. More inside.
Roberta Holland
Posted inUncategorized
Business Lobby Targeting Proposed EU Gender Quotas for Boards
Image: Title: SégolNov. 25—A proposed directive to implement EU-wide quotas for women on boards is one of a handful of pending measures the newly installed European Commission should shelve, says BusinessEurope. The lobbying group argued in a notice to the Commission that was leaked to media outlet EurActiv that the directive would harm competitiveness and should be voluntary rather than binding. The suggestion has rankled other groups. “It is outrageous that BusinessEurope says requiring companies to have more women on their boards would damage competitiveness,” Bernadette Ségol, general secretary of the European Trade Union Confederation, told EurActiv. More inside.
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Bank of England Chief Suggests Rules Needed for Bankers’ Fixed Pay
Image: Title: CarneyNov. 19—Even though caps on banker bonuses in the European Union are still generating controversy, some are calling for new rules for bankers’ fixed pay. Bank of England Governor and Financial Stability Board Chairman Mark Carney said during a speech this week that new rules on bankers’ fixed pay may be needed to hold them accountable for misconduct and discourage excessive risk taking. “Senior manager accountability and new compensation structures will help to rebuild trust in financial institutions,” Carney said. More details inside.
Posted inUncategorized
European Commission Pushing Ahead with New Shareholder Rights Law
Image: Title: HooijerNov. 19—The head of corporate governance for the European Commission, Jeroen Hooijer, said at a recent conference in the Netherlands that the Commission could put a proposal to revise the European Union’s shareholder rights rules before lawmakers by next summer. The proposal was unveiled last spring and calls for new voting rights for shareholders on executive pay and related-party transactions, as well as for efforts to better identify and engage shareholders. Hooijer said some of the provisions may encounter friction because “member states tend to already have their own, different rules, with which they’re already comfortable.” More inside.
Posted inUncategorized
EU Financial Services Commissioner Will Press on With Reforms
Image: Title: HillNov. 12—The new EU commissioner for financial services has pledged to continue implementing numerous reforms sparked by the 2008 financial collapse, but cautioned lawmakers to assess the effect new regulations have on growth and jobs. Jonathan Hill, commissioner for financial stability, financial services, and capital markets union, said in a speech to the Commission last week that his top priorities would be implementing agreed-upon measures as well as pushing forward with an integrated single market for capital. “There can be no going back to the old, pre-crisis ways,” Hill said during his Brussels speech. More inside.
Posted inUncategorized
EU Approves New Damages Directive for Antitrust Violations
Image: Title: VestagerNov. 12—A new law approved by European Union lawmakers this week is designed to make it easier for companies suffering damages due to antitrust violations to seek compensation anywhere within the bloc. The damages directive includes new rules regarding disclosure of evidence and allows a decision from a national competition authority to be used as evidence in other national court systems elsewhere in the European Union. Member states have two years to implement the new law, which will make it “easier for European citizens and companies to receive effective compensation for harm caused by antitrust violations,” Margrethe Vestager, EU commissioner in charge of competition, said in a statement. More details inside.
Posted inRegulatory Enforcement
EU Securities, Markets Regulator Releases 2014 Enforcement Priorities
Image: Title: MaijoorNov. 5—The European Securities and Markets Authority has released common enforcement priorities for the year, which will be used by both ESMA and national regulators. These priorities include preparation and presentation of consolidated financial statements, financial reporting by entities with joint arrangements, and recognition and measurement of deferred tax assets. ESMA Chair Steven Maijoor said that the goal is to achieve a high level of harmonization in enforcement and to contribute to consistency in the application of IFRS across the European Union. Details inside.
Posted inRegulatory Enforcement
EU Banking Union Begins Supervision; New Regulations on Horizon
Image: Title: NouyNov. 5—In a major milestone for the long-anticipated banking union, the European Central Bank has begun its role as the single supervisor for the Eurozone’s banking sector. The ECB’s Single Supervisory Mechanism (SSM) will directly oversee 120 of the area’s biggest banks and indirectly oversee more than 3,000 smaller financial institutions through national authorities. According to SSM Chair Danièle Nouy, the ECB’s work on new regulations has laid a solid foundation for the new supervisor. “We are ready to take on our tasks,” she said. More inside.
Posted inAccounting & Auditing
Proponents Say IFRS Will Benefit EU Moving Forward
Image: Title: HoogervorstOct. 29—The heads of two groups charged with overseeing the International Financial Reporting Standards have told the European Commission that using the single set of financial reporting standards has benefited the European Union and will continue to do so. IFRS Foundation Board of Trustees Chairman Michel Prada and International Accounting Standards Board Chairman Hans Hoogervorst (left) also urged the EC not to make its own modifications to the standards. The Commission’s consultation period on the use of IFRS in the European Union ends next month. More inside.
Posted inAnti-Bribery
U.K. Fraud Office’s GC Offers Advice to Corporates for DPAs
Image: Title: GreenOct. 29—The general counsel for the U.K.’s Serious Fraud Office has provided some advice for companies interested in taking advantage of newly approved deferred-prosecution agreements if faced with an investigation from the SFO. Alun Milford, the SFO’s general counsel, said in a speech that the key factors for whether negotiations would be offered are “cooperation and the free supply of relevant information.” Also this month, the SFO sought a major funding increase to help pay for complex cases, while also announcing a criminal probe into accounting practices by U.K. retailer Tesco. “This is an important, if not a pivotal time for the SFO,” Director David Green (left) said. More inside.
