Being Better Informed - October 2012

After a relatively quiet August the pace of regulatory developments accelerated in September and is likely to continue for the foreseeable future.

The European Commission’s proposal for a Banking Union was published on 12 September 2012 and this gives the European Central Bank prudential supervisory duties over Eurozone banks, bank-led financial conglomerates and financial holding companies through a single supervisory mechanism (SSM). The European Banking Authority (EBA) would be responsible for developing the single rule book and a supervisory handbook.

LIBOR reform also dominated the debate in September. Our Feature article reviews The Wheatley Review of LIBOR: Final Report which proposes significant changes to the LIBOR setting process. Also, the International Organisation of Securities Commissions established a benchmark review taskforce in September to review the setting of benchmarks such as LIBOR and the European Commission launched a consultation reviewing the production and use of indices used as benchmark.

Over the counter derivative reforms under European Market Infrastructure Regulation (EMIR) progressed last month. The EBA published its draft technical standards on the capital requirements for central counterparties on 26 September. On 27 September, The European Securities and Markets Authority published its draft final technical standards setting out many implementing details for firms.

The Financial Services Authority continued to focus on client money issues and released a consultation paper looking at amendments to the Client Assets (CASS) regime needed to implement EMIR. The consultation also considers a range of important longer-term changes.

The way to read the document is to review the Table of Contents (page 2), click the relevant Sector section to identify the news of interest and then to directly go to the topic/article of interest by clicking in the active links within the Sector's table of contents.
The key to managing the continuous regulatory and accounting developments is understanding your requirements and assessing how this will affect you in the Channel Islands. Your PwC Channel Islands local contacts would be delighted to discuss how these developments could affect you.

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