Pakistan is ready to share details of the debt related to the China-Pakistan Economic Corridor (CPEC) with the International Monetary Fund (IMF), and the decision to approach the Fund was taken after consultations with friendly countries, said Finance Minister Asad Umar on Saturday. Umar, however, rejected the US State Department’s statement, suggesting that the debt accrued on CPEC projects was to blame for the country’s current economic crisis.
By Shahbaz Rana
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The Financial Stability Board (FSB) published Crypto-asset markets: Potential channels for future financial stability implications. This report sets out the analysis behind the FSB’s proactive assessment of the potential implications of crypto-assets for financial stability. The reports follows up on the initial assessment set out in the FSB Chair’s March 2018 letter to G20 Finance Ministers and Central Bank Governors, and the summary of the work of the FSB and standard-setting bodies on crypto-assets the FSB published in July.
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Commission puts forward an action plan to develop a sustainable and circular bioeconomy that serves Europe’s society, environment and economy. As announced by President Juncker and First Vice-President Timmermans in their letter of intent accompanying President Juncker’s 2018 State of the Union Address, the new bioeconomy strategy is part of the Commission’s drive to boost jobs, growth and investment in the EU. It aims to improve and scale up the sustainable use of renewable resources to address global and local challenges such as climate change and sustainable development.
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The Financial Conduct Authority (FCA) is consulting on new rules and guidance to reduce the potential for harm to investors in funds that hold illiquid assets, particularly under stressed market conditions. These measures will also support the FCA’s market integrity objective and help address financial stability concerns. Open-ended funds that invest in illiquid assets can encounter difficulties if significant numbers of investors simultaneously try to withdraw their money at short notice. An example of this occurred following the result of the UK referendum on EU membership in June 2016.
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Advocate General Wathelet proposes that the Court of Justice should rule that the decision of the ECB establishing a programme for the purchase of government bonds on secondary markets is valid. The programme does not infringe the prohibition of monetary financing and does not exceed the powers of the ECB. The PSPP is one of the four sub-programmes of the Expanded Asset Purchase Programme (‘APP’) announced by the ECB in January 2015 and generally referred to as ‘quantitative easing’. The other three sub-programmes of the APP, to which the PSPP is subsidiary, concern the purchase of private bonds.

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The Executive Board of the International Monetary Fund (IMF) adopted an implementation plan to strengthen the Fund’s engagement in fragile and conflict-affected countries. The plan is based on recommendations outlined in a staff paper entitled “Implementation plan in response to the Board-endorsed recommendations for the IEO Evaluation Report-The IMF and Fragile States.”
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The FCA has published new rules aimed at improving the advice people receive when considering transferring their pension. This policy statement confirms that the FCA is taking forward most of the proposals put forward for consultation in March 2018, which mainly related to transfers from defined benefit (DB) to defined contribution (DC) pension schemes. This consultation proposed further changes to its rules and guidance on advising on transferring from safeguarded benefit schemes (where there is some form of guarantee or promise about the rate of secure pension income that the member will receive, or will have an option to receive).
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The Basel Committee published the results of its latest Basel III monitoring exercise based on data as of 31 December 2017. The Committee established a rigorous reporting process to regularly review the implications of the Basel III standards for banks, and has been publishing the results of such exercises since 2012. For the first time, the report sets out the impact of the Basel III framework that was initially agreed in 2010 as well as the effects of the Committee’s December 2017 finalisation of the Basel III reforms.
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The European Securities and Markets Authority (ESMA) has agreed to renew the restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients, in effect since 1 August, from 1 November 2018 for a further three-month period. ESMA has carefully considered the need to extend the intervention measure currently in effect. ESMA considers that a significant investor protection concern related to the offer of CFDs to retail clients continues to exist. It has therefore agreed to renew the restriction from 1 November.
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Financial Services Superintendent Maria T. Vullo announced that the Department of Financial Services (DFS) has issued guidance to assist regulated banking institutions in their lending activities involving New York rent-stabilized or rent-regulated multifamily residential buildings.  DFS has received complaints that certain owners of rent-stabilized multifamily residential buildings who have engaged in inappropriate practices including tenant harassment and unsafe living conditions may have obtained loans, directly or indirectly, from banking institutions for the purchase or renovation of buildings, and DFS expects enhanced due diligence of such landlords.
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