In an opinion issued on April 24, 2018, Jesner v. Arab Bank, PLC, a divided US Supreme Court held that litigants cannot use the Alien Tort Statute, 28 U.S.C. § 1350, to sue foreign corporations. The decision put an end to a split among the lower courts and in narrowing the ATS’s application, the
Eligibility of guarantees as unfunded credit protection under the CRR
In February, the PRA published a consultation paper containing its proposals as to how the eligibility criteria for guarantees to be treated as unfunded credit protection under the Capital Requirements Regulation (CRR) should be interpreted (our blog is here).
Those proposals have proved to be controversial. In particular the PRA:
- suggests that the requirement
Bank of England speech on hidden risks in markets
On 26 April 2018, the Bank of England (BoE) published a speech by Alex Brazier (Executive Director for Financial Stability and Risk, BoE) that discusses some of the hidden risks in the market. Mr Brazier explains that there are generally two types of hidden risk which he calls “bears” and “icebergs”.
The risks that are
FSB second consultation on UPI governance
On 26 April 2018, the Financial Stability Board (FSB) published its second consultation on proposed governance arrangements for the unique product identifier (UPI). This latest consultation follows an initial consultation last October and sets out proposals for the governance arrangements for a global UPI, as a key harmonised identifier designed to facilitate effective aggregation of
ISDA guide to navigating derivatives trading on US / EU recognised trading venues
On 25 April 2018, the ISDA published A practical guide to navigating derivatives trading on US-EU recognised trading venues. In particular the guide analyses the effect of mutual recognition on the order flow of trades executed on US and EU derivatives trading venues, highlighting benefits and pointing to areas where further US / EU
Governing cyber risk: a guide for company boards
On 25 April 2018, TheCityUK published a report Governing cyber risk: a guide for company boards. The report is intended to inform boards as to how to advance their governance of cyber risk and to provide practical guidance on what boards can do to ensure the security of their customers, their people and their
Study on the distribution systems of retail investment products
On 24 April 2018, the European Commission published a study that has been produced for it which provides facts and figures on the current features and functioning of European markets for retail investment products.
The study identifies obstacles that consumers face in the EU when buying investment funds, investor-driven life insurance or private pension. By
IOSCO seeks feedback on proposed good practices for audit committees to support audit quality
On 24 April 2018, the International Organization of Securities Commissions (IOSCO) published a consultation report on good practices for audit committees in supporting audit quality. The consultation report proposes good practices regarding the features an audit committee should have to be more effective in promoting and supporting audit quality. These features include the qualifications
ESRB Macroprudential Policy Review 2017
On 25 April 2018, the European Systemic Risk Board (ERSB) published A Review of Macroprudential Policy in the EU in 2017. Key messages in the review include:
- as there are indications that the financial cycle is turning in some countries, more Member States tightened the counter cyclical capital buffer;
- the real estate sector continues
DNB consultation on outsourcing good practices for insurers
On 24 April 2018, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a news item announcing that it has launched a consultation on good practices for controlling outsourcing risks.
According to DNB, insurers outsource various activities for various reasons (for example, to make use of the knowledge and scale of a