Issue:

ICMA colleagues had asked the support of the EFMLG regarding the concept of encumbered assets at their presentation to the March EFMLG meeting.

Documents:

Presentation
ICMA paper: Collateral is the new cash. The systemic risk of inhibiting collateral fluidity. April 2014. 
FINMA paper
BCBS paper

Rapporteur:

Moïse Ba

Issue:

The EU regulatory framework suggests a group wide risk management and a data transfer for a consolidated view. However, if the regulators’ view is that group wide  risk management  is a pre-requisite for proper  steering it should also provide the necessary instruments to parent companies, which should not  just receive data for aggregating numbers and calculate concentration risk but must also be in the position to steer the non-risk (e.g. business) side accordingly.
Banking secrecy laws in EU member states are not harmonized neither in scope, format nor consequences in case of breach. There is no “intra-group privilege“ exemption from a local banking secrecy regulation. And non-compliance may cause civil damages and/or criminal sanctions.

Documents:

Country survey - client data transfer rules
Main issues faced by Credit Institutions in relation to banking secrecy rules
Regulation 575/2013 of the EP and the Council of 26 June 2013 (CRR)

Rapporteur:

Ulrich Parche

Issues:

The recently published final rule under section 165 Dodd Frank Act contains a number of provisions which impose enhanced prudential US standards on foreign banking organisations operating in the US, measured by reference to US non-branch assets. The largest of these organisations (with assets exceeding $50bn) must establish an intermediate holding company by 1st July, 2016, consolidate subsidiaries under it, and fulfil a range of capital, liquidity, and leverage requirements. Enhanced local US risk management, governance and resolution planning requirements will also apply. Enhanced requirements for the largest entities in any jurisdiction may be justified, and coherent in the context of resolution planning and other regulatory imperatives. However, to the extent that such requirements do not give credit to the regulatory supervision applied to foreign banking organisations, and impose local costs and financial status obligations, they can fundamentally affect the business model of the foreign banking entities concerned. The US should apply such burdens if it is content to see them imposed on the foreign operations of its own banking organisations.

Documents:

Draft Report of the Task Force
Speech by Governor Daniel K. Tarullo at the Federal Reserve Bank of Chicago May 8, 2014: Rethinking the Aims of Prudential Regulation

Rapporteur:

Francis Dickinson

Issue:

At the beginning of June 2014 the results of the exercise of establishing a new index, carried out by the different stakeholders will be presented under the auspices of the European Banking Federation.

Documents:

Presentation

Rapporteur:

Fernando Conlledo

Issue:

Definition of spot as financial instrument and consequences: spot transactions are subject to reporting.

Documents:

Presentation

Rapporteur:

Natalia Butragueno and Francesca Passamonti

Issue:

Quadrilateral agenda
EFMLG participation and presenters
EFMLG views to be brought to the Quadrilateral

Documents:

Latest draft Quadrilateral agenda

Rapporteur:

The Secretariat

Issue:

ESMA has answered to the EFMLG but the de facto difficulties remain.

Documents:

ESMA reply
ESMA MiFid Opinion
ESMA opinion on structured retail products
Presentation

Rapporteur:

Adolfo Fraguas

Issue:

The legal opinions to be provided under this Article will be analysed and the concepts used, interpreted.

Documents:

CRR (See point 3 above)
Presentation

Rapporteur:

Bertrand Brehier

10a. EU-Russia conflict on Ukraine

Documents:

Council Regulation 269/2014 of 17 March 2014 concerning restrictive measures in respect of actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine.

Rapporteur:

Ulrich Parche; the Secretariat

10b. Exchange of views on Liikanen implementation (Commission proposal)

Documents:

Presentation
Proposal for a Regulation of the European Parliament and of the Council on structural measures improving the resilience of EU credit institutions

Rapporteur:

Francesca Passamonti

Any other business 

Updates from the Chair and the Secretariat
Next meeting