Background

Welcome to the May edition of Banking and Capital Markets Insight, which focuses on technical issues currently coming out of the banking, capital markets, securities and fund management arenas.

Key findings

Our articles cover the following diverse areas:

  • Kush Patel on the parallel efforts by the International Accounting Standards Board and the U.S. Financial Accounting Standards Board to put in place an expected loss impairment model for loan assets;
  • Clifford Smout and Mike Williams on the wholesale conduct risk agenda of the Financial Conduct Authority (FCA), following on from the Financial Services Authority's (FSA) previous pursuit of wholesale conduct issues which it believes have a clear linkage to retail consumer protections, particularly following concerns around LIBOR and other benchmarks;
  • Martin Walker on the potential global reach of the proposed EU-level Financial Transaction Tax (FTT) that applies on both an issuer and a residence basis, including the situation where a non-European financial firm deals with a European counterparty, and where both are drawn into the FTT's scope;
  • Paul Leech on the practical issues caused by the Financial Reporting Council's recent guidance to auditors on firms passing the responsibility for Client Money and Asset Sourcebook compliance to external third parties, such as custodians and administrators; and
  • Vicki Rawstorne on the FCA's intended approach to consumer credit regulation, published by the FSA on 6 March 2013, where firms will need to be re-authorised for their existing consumer credit activities from October 2014, and the FCA will be able to pursue firms under their own rules from 1 April 2014, with some capability to look back at past consumer behaviour by the firm.

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