Basel Committee issues final standard to control banks’ large exposures. The Basel Committee on Banking Supervision published a final standard for measuring and controlling large exposures. It will take effect from 1 January 2019. The large exposure standard sets the overall limit to 25% of a bank’s Tier 1 capital. The definition and the reporting thresholds are now 10% of the eligible capital base instead of the 5% initially proposed. A tighter limit will apply to exposures between banks that have been designated as global systemically important banks (G-SIBs). This limit has been set at 15% of Tier 1 capital. (4/15/2014) BIS Press Release.
Financial Conduct Authority details new mortgage rules. The FCA is introducing new rules for mortgage lenders and advisers in the UK. The rules, scheduled to go into effect on April 26, are designed to ensure that people only get a mortgage they can afford, and to prevent a recurrence of certain lending practices. Every borrower will now have to prove that they can afford the repayments, both now and in the future. (4/14/2014) FCA Mortgages.
FCA concerned about premium calls to consumers. The Authority is concerned that customers are being charged high rates to contact financial services firms and will consult with industry, consumer organizations and consumers to ensure that customer calls are more affordable. (4/14/2014) FCA Premium Calls.
The European Securities and Markets Authority. The Authority launched a consultation on draft Regulatory Technical Standards outlining the framework of the European Market Infrastructure Regulation (EMIR). The standards cover the risk management procedures for counterparties in non-centrally cleared OTC derivatives, the criteria concerning intragroup exemptions and the definitions of practical and legal impediments. The consultation runs until 14 July 2014. (4/14/2014) EMIR.
The European Banking Authority seeks guidance on high earner remuneration.The EBA is seeking consultations on its revised Guidelines on the data collection exercise for high earners and on its Guidelines on the remuneration benchmarking exercise. The updates to the Guidelines follow changes in reporting requirements as laid down in the Capital Requirements Directive and Regulation. (4/7/2104) EBA Remuneration.
IOSCO expresses concern on the impact of SEF rule on Asia Pacific Derivatives Markets. The Commission expressed its concerns to the CFTC regarding the impact of the core principals and other requirements for Swap Execution Facilities on Asia Pacific OTC derivatives markets, observing that a number of non-US platforms have difficulty ascertaining which clients qualify as US persons, and that some have refrained from providing services to US participants. (4/9/2014) Asia Swaps.
FSB publishes semi-annual progress reports on OTC derivatives market reforms. The Financial Stability Board report finds that substantial progress has been made toward meeting G20 commitments, through international policy development, jurisdictions’ adoption of legislation and regulation, and expansion in the use of market infrastructure. (4/8/2014) FSB OTC.