EU Council Blinks First Over SRM

On 19 February 2014, the EU Council published a press release reviewing the state of play of negotiations over the single resolution mechanism (SRM).

Committed to reaching agreement over the SRM before the upcoming parliamentary elections, EU finance ministers had met the previous day in order to discuss possible adjustments to the Council’s December 2013 general approach to the SRM, with a view to giving more flexibility to the presidency in the forthcoming “trilogue” negotiations.  Wiggle room was noted as existing in the following areas:

We’re moving home

ECB Wants Beefed-Up SRM

On 12 February 2014, the European Central Bank (ECB) published a speech by Mario Draghi, ECB President, on financial integration and EU banking union.

Mr Draghi conceded that there were improvements that could be made to elements of the Council’s proposal on the Single Resolution Mechanism

SRM update- inching forward

4th February 2014. Following the first plenary debate on the SRM, Michel Barnier said that it was clear that Parliament’s “very valid concerns” would have to be taken on board.

6th February 2014. The Parliament published a press release, detailing the plenary vote adopting the amendments to the Commission’s SRM proposal. The release also criticised the Council’s stance as timewasting. Talks will continue until agreement is reached on the legislation itself.

11th February 2014. The Presidency of the Council published a report for COREPER. The report identifies SRM elements outwith the Regulation, the key issues and other issues identified during the trialogue process. The report ends with the suggestion that the Council could agree a revised approach based on these issues.

As expected, the process inches onwards, but it would be surprising to see any sudden outbreak of harmony in the EU tri-bureaucracy. The inevitable brinkmanship dictated by the upcoming May elections is likely to lead to some last-minute amity.

FCA Legislation Update

On 11 February 2014, the FCA published its policy development update for January 2014 (PDU 10) which details forthcoming FCA publications relating to a number of areas, as detailed below:

Business Standards

Initiative	Current Expected Publication Date	Previous Expected Publication Date (PDU 9)
Client Assets Review – PS to 13/5	Q 1/2 2014	Q 1/2 2014
Review of the client money rules for insurance intermediaries and feedback to CP 12/20 – CP	TBC	TBC

 

ECB Consults on Draft SSM Framework Regulation

On 7 February 2014, the European Central Bank (ECB) published a consultation paper on a draft of the ECB Single Supervisory Mechanism (SSM) Framework Regulation.

Pursuant to the SSM, from 4 November 2014, the ECB will assume responsibility for the supervision of significant supervised entities (SSEs)

ECB Identifies Banks Subject to SSM

On 6 February 2014, the European Central Bank (ECB) published a decision identifying those banks that are subject to comprehensive assessment under the Single Supervisory Mechanism (SSM) in accordance with Article 33(4) of Regulation 1024/2013.

Parliament Offers Olive Branch Over Resolution Funding?

On 4 February 2014, the EU Parliament published a press release on the latest negotiations over bank resolution.

As previously reported (see this blog post for more detail), negotiations over resolution funding seemed largely to have reached an impasse.  However, yesterday’s tone seems somewhat more conciliatory in nature.

Liikanen Out of the Blocks

EU Commission to Publish Liikanen Proposal on 29 January 2014

On 24 January 2014, the EU Commission published a press release confirming that, on 29 January 2014, it will publish a legislative proposal on EU bank structural reform designed to implement the findings of the Liikanen High Level Group.

It is thought that political agreement on the legislative proposals will not be reached before the end of 2015, with restrictions on proprietary trading likely to take effect from 2018.