The Financial Conduct Authority (FCA) has imposed on Paul Walter, a former Bank of America Merrill Lynch International Limited (BAML) bond trader, a financial penalty of £60,090 for engaging in market abuse. Following an investigation, the FCA found that Mr Walter, an experienced trader, engaged in market abuse by creating a false and misleading impression as to supply and demand in the market for Dutch State Loans (DSL) on 12 occasions in July and August 2014.  
Continue reading…

The federal banking agencies finalized a rule for certain banking organizations by extending the existing capital requirements for mortgage servicing assets and certain other items. The rule is being finalized to prevent different rules from taking effect while the agencies consider a broader simplification of the capital rules.
Continue reading…

The Consumer Financial Protection Bureau (CFPB), Board of Governors of the Federal Reserve System, and Office of the Comptroller of the Currency (OCC) today announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2018 will increase from $25,500 to $26,000.
Continue reading…

The European Securities and Markets Authority (ESMA) has issued two Statements on Initial Coin Offerings (ICOs), one on risks of ICOs for investors and one on the rules applicable to firms involved in ICOs. ESMA has observed a rapid growth in ICOs globally and in Europe and is concerned that investors may be unaware of the high risks that they are taking when investing in ICOs. Additionally, ESMA is concerned that firms involved in ICOs may conduct their activities without complying with relevant applicable EU legislation.
Continue reading…

Contracts for differences (CFDs), including financial spread bets, with cryptocurrencies as the underlying investment are increasingly being marketed to consumers. These products are extremely high-risk, speculative products. This is a warning of the Financial Conduct Authority (FCA) to inform consumers about the risks of buying them.
Continue reading…

The Financial Stability Institute (FSI) was jointly created in 1998 by the BIS and the Basel Committee on Banking Supervision. The FSI’s main objectives are to: (i) promote sound supervisory standards and practices globally and support full implementation of these standards in all countries; (ii) keep supervisors updated with the latest information on market products, practices and techniques; (iii) provide a venue for policy discussion and sharing of supervisory practices and experiences; and (iv) promote cross-sectoral and cross-border supervisory contacts and cooperation. These objectives are achieved through the production of FSI Insights on policy implementation and other publications, meetings and conferences with senior officials and FSI Connect, the BIS’s web-based learning tool for financial sector supervisors.
Continue reading…

Julia Hoggett, the new Director of Market Oversight at the FCA, shares in her speech several of her observations, regarding both MAR; the relatively newly minted Market Abuse Regulation (MAR) and more broadly the overall ‘market abuse regime’. Her aim is to help frame not just the FCA’s approach, but how FCA hope the industry is thinking about both MAR and the regime as a whole.
Continue reading…

In this article the author will consider how central banking in the United Kingdom and the United States has evolved in response to the challenges of recent years. He will address a limited set of topics. These remarks are divided into three parts. In the first part, he will discuss several aspects of aggregate monetary policy: central bank independence, policy transparency, and policy tools. In the second part, he will consider differences between the approaches of the two banks to their lender-of-last-resort function. And, third, he will close with brief reflections on the central bank’s responsibility for financial stability.
Continue reading…

The Financial Conduct Authority has today announced that Capita Financial Managers Limited (CFM) has been publicly censured and will pay up to £66 million to those investors who suffered loss as a result of investing in the Guaranteed Low Risk Income Fund, Series 1 (or as it became later known, the Connaught Income Fund, Series 1) (“the Fund”), which is now in liquidation. The payment will be made via the FCA.
Continue reading…

The Bank for International Settlements (BIS) has published the paper ‘Policy Rules for Capital Controls’. This paper exames two possible objectives: macroprudential or trade competitiveness, with which policymakers in emerging market economies (EMEs) may have used capital controls. With this paper BIS attempts to borrow the tradition of estimating policy reaction functions in monetary policy literature and apply it to capital controls policy literature.
Continue reading…