Being Better Informed - September 2012

In this month’s Being Better Informed, we look at the changing European Union rules on remuneration. These rules will lead to a fundamental restructuring, and possibly lowering, of compensation. In regulatory updates for August, we saw the LIBOR enforcement developments from the EU Commission, UK policy maker and first thoughts from the Wheatley Review.

The European Supervisory Authorities (ESA) have published a joint consultation paper on technical standards that are required to create uniform calculation methods for certain companies in financial conglomerates. The ESAs intend to harmonise the methods used to calculate supplementary capital for bank- and insurance-led conglomerates.

August saw some interesting developments in Over-the-Counter (OTC) derivative reform. European Markets and Infrastructure Regulation (EMIR) came into force, which triggered new reporting requirements. In the US, final rules on swap definitions and record keeping were published in the Federal Register, detailing compliance dates for many US Dodd-Frank Title VII rules.

In September we expect seismic releases from the Commission and the Liikanen report on banking structure. We are also expecting further developments on Capital Requirements Directive (CRD) IV, Alternative Investment Fund Managers Directive (AIFMD) and EMIR, along with final guidance on key issues regarding Short Selling Regulation (SSR).

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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