Global Glimpses

The European Commission has unveiled a package of legislative proposals that it hopes will hinder abusive tax practices and aggressive tax planning, by providing greater transparency on what companies pay and where. “Tolerance has reached rock bottom for companies that avoid paying their fair share of taxes, and for the regimes that enable them to do this,” said Pierre Moscovici, commissioner for Economic and Financial Affairs, Taxation, and Customs. More inside.

Ségol

Nov. 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.

Dec. 10—The Financial Conduct Authority, which took over financial regulation for the United Kingdom in 2013, is undertaking a complete restructuring to better deliver on its objectives, protect consumers and market integrity, and promote competition. The agency announced that certain divisions will be consolidated with new ones created for supervision, risk, and market oversight. “The financial industry continually evolves and, to regulate it effectively, we must evolve too,” FCA Chief  Executive Martin Wheatley said. More inside.

Vestager

The European Commission is investigating whether Belgium’s “excess profit” rule, which allows certain companies to get deep deductions on taxable profits by claiming economies of scale stemming from being part of a multinational group, is breaking EU competition laws. “If our concerns are confirmed, this generalized scheme would be a serious distortion of competition,” Competition Commissioner Margrethe Vestager said. More inside.

It hasn’t been an easy week for London-based HSBC. Rocked last weekend by the International Consortium of Investigative Journalists’ Swiss Leaks probe, detailing massive tax evasion by HSBC’s private Swiss bank, HSBC is now faced with the prospect of  Belgian authorities issuing arrest warrants for former and current managers of the Swiss unit. Media reports indicate a Belgian judge is frustrated by the lack of cooperation from the firm in relation to charges of fraud and money laundering. Details inside.

Wheatley

Britain’s Financial Conduct Authority released a laundry list of priorities for the upcoming financial year, pledging to continue work on concerns like poor culture and technological developments while ramping up efforts on financial crime, the pensions sector, and individual accountability. “This is an important day in terms of setting out our priorities for the year ahead,” FCA Chief Executive Martin Wheatley said. Details inside.