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Commission sets out its plans for a new EU framework for crisis management in the financial sector
October 20, 2010--The crisis demonstrated clearly that when problems hit one bank, they can spread to the whole financial sector and well beyond the borders of any one country. It also showed that systems were not in place to manage financial institutions facing difficulties. Very few rules exist which determine which actions should be taken by authorities in the case of a banking crisis. That is why the G20 agreed that crisis prevention and crisis management frameworks had to be set up. Today, the European Commission responds by setting out its plans for an EU framework for crisis management in the financial sector. These pave the way for legislation due by spring 2011 which will create a comprehensive crisis management framework for banks and investment firms.
Internal Market and Services Commissioner Michel Barnier said: “First, we must try to avoid a financial crisis in the future. That is why our work to make the banking sector stronger and to create a real supervisory framework is so important. But banks will still face difficulties in the future. They might even fail and should be allowed to do so. We need to make sure that they can do so without bringing down the whole financial system, or risking that taxpayers are called on to pay the costs. No bank should be "too big to fail" or too interconnected to fail. That is why we need a clear framework which ensures authorities throughout Europe are well prepared to deal with banks in difficulty and handle possible bank failures in an orderly manner. That is the aim of today's plans.”
The Commission's Communication sets out the main elements that will be part of the Commission's legislative proposals next year, and is the result of extensive consultations over the past months ( see IP/09/1549). Beyond the immediate priority of putting in place efficient crisis management arrangements in all Member States, the Communication also includes a "roadmap" providing a longer term view of some of the major challenges which will need to be overcome in order to ensure smooth handling of crises.
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Source: European Commission
Netherlands' pension system best, Mercer says
October 20, 2010--The Netherlands has the world's best pension system, according to a Mercer report ranking retirement systems in 14 nations with major pension systems.
The annual Melbourne Mercer Global Pension Index placed the Netherlands on top for the second year running with a score of 78.3 out of 100.
The system in the Netherlands, which the report called “sound,” scored top marks in adequacy, which considers factors such as the minimum pension level and how much an average earner would receive as a percentage of his salary upon retirement. The Dutch system also was first in integrity, which considers how much regulatory protection is available to an average pension fund participant.
Sweden, which is third overall, scored top marks in sustainability, which considers factors such as state pension age and labor-force participation. Sweden's total score is 74.5.
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Source: IP&E
ETF Landscape: STOXX Europe 600 Sector ETF Net Flows, week ending 15-Oct-10
October 20, 2010--Last week saw US$37.7 Mn net outflows from STOXX Europe 600 sector ETFs. The largest sector ETF net outflows last week were in automobiles and parts with US$114.7 Mn and healthcare with US$44.5 Mn while retail experienced net inflows of US$95.3 Mn.
Year-to-date, STOXX Europe 600 sector ETFs have seen US$699.1 Mn net inflows. Banks sector ETFs have seen the largest net inflows with US$284.4 Mn, followed by media with US$141.3 Mn while food and beverage has experienced the largest net outflows of US$167.0 Mn YTD.
The US$10.5 Bn AUM invested in the ETFs is greater than the US$4.2 Bn open interest in the sector futures. The ETF AUM is greater than the open interest in the corresponding futures contract in 18 out of 19 sectors.
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Highly positive September for hedge funds read more FTSE and ECPI launch first Responsible Investment Index Series for the Italian market FTSE ECPI Italia SRI Benchmark Index is made up of constituents from the FTSE MIB Index and FTSE Italia Mid-Cap Index that show good ESG practices.
FTSE ECPI Italia SRI Leaders Index is made up of constituents from the FTSE MIB Index and FTSE Italia Mid-Cap Index that demonstrate excellent ESG practices. read more Bilateral Memorandum of Understanding Signed Between Capital Markets Board of Turkey and the Emirates Securities and Commodities Authority (ESCA) Mr. AKGIRAY also drew attention to their activities within the framework of the International Organization of Securities Commissions (IOSCO) and emphasized that CMB is hosting the IOSCO Emerging Markets Committee Meeting and Conference at the same time in Istanbul.
In his speech at the Signing Ceremony, ESCA Chief Executive Officer H.E. Abdulla Al TURIFI stated that the signing of this MoU will enhance the mutual relationship between CMB and ESCA especially in the field of training and exchange of information. EU Governments Approve New Hedge Fund Rules read more Twelve UK asset owners sign up to new Stewardship Code
Out of the 68 institutions which have signed up, 48 are asset managers and eight are service providers. Mercer is the only investment consultant that has signed up.
read more U.S. Forestry Firm Launches European Hedge Fund 3038th ECONOMIC and FINANCIAL AFFAIRS Council meeting (provisional version) - Luxembourg read more If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: Global ETF Research & Implementation Strategy Team, BlackRock
October 19, 2010--The ebb and flow of the stock market over the past few months continued in September, notably with the S&P 500 index surging (+8.92%) and implied volatility (23.70%) decreasing by 2.35%. With its best return since the rebound of spring 2009, the S&P 500 index managed a profitable year-to-date performance.
On the fixed-income market, risky bonds also benefited from the ambient optimism and managed an outstanding performance (+5.59%) while regular bonds remained stable (-0.01%), like the Lehman Global Bond Index (+0.02%). The commodities market also registered its best performance (+9.40%) over the past sixteen months. The dollar fell sharply (-4.21%).
Source: EDHEC
October 19, 2010--Award-winning Global Index Provider, FTSE Group (‘FTSE’) and leading independent sustainability research and rating provider, ECPI have today launched the first responsible investment index series for the Italian market. The FTSE ECPI Italia SRI Index Series will enable investors to track the performance of companies listed on the Italian Exchange with leading Environmental, Social and Corporate Governance (ESG) practices.
The index series comes at a time when investor interest in Socially Responsible Investing (SRI) is increasing. The new indices build on the existing FTSE Italia Index Series, which FTSE started calculating in 2009, and create further choice and investment opportunities in the thriving domestic retail market. The series currently consists of two indices:
Source: FTSE
October 19, 2010--On October 13, 2010 A Memorandum of Understanding (MoU) was signed between the Capital Markets Board of Turkey (CMB) and the Emirates Securities and Commodities Authority (ESCA).
The MoU which aims which aims to foster the cooperation and exchange of information between the authorities of the aforementioned two countries has been signed by Chairman Prof. Dr. A. Vedat AKGIRAY on behalf of the CMB and Chief Executive Officer Mr. H.E. Abdulla S. Al Turifi on behalf of the Emirates Securities and Commodities Authority.
In his speech at the signing ceremony, CMB Chairman Prof. Dr. Vedat AKG?RAY stated that CMB attaches importance to international relations and increases its efforts of cooperation between other countries. Besides, he stated that the MoU signed with United Arab Emirates is the 27th one made for this purpose and this collaboration will continue in an increasing trend.
Source: Capital Markets Board of Turkey
October 19, 2010--European Union governments reached agreement Tuesday on new rules for hedge funds and private equity firms, adding small changes to ease French concerns the rules would allow offshore funds to operate in the EU without adequate legal scrutiny.
If approved by the European Parliament, the rules will require hedge funds, private equity firms and other investment vehicles for sophisticated investors to register with national authorities. National regulators and even the European Securities and Markets Authority, the new pan-EU regulator, will have the power to order funds to limit the amount of borrowed money they use to boost returns if a risk to financial markets or the economy is seen.
Source: Dow Jones
October 19, 2010-Twelve UK pension funds have signed up to the UK’s new Stewardship Code, a set of seven voluntary principles which aim to formalise investor responsibility.
The asset owner signatories are: British Airways Pensions, Environment Agency Active Pension Fund, Equitable Life, Lothian Pension Fund, Merseyside Pension Fund, Northern Ireland Local Government Officers’ Superannuation Committee, Pension Protection Fund, Railpen, The BBC Pension Trust, the BT Pension Scheme, USS and the West Midlands Pension Fund.
Source: Responsible Investor
October 19, 2010--Forestry investment firm Timberland Investment Resources has launched a European timber hedge fund.
Timberland Investment Resources Europe will offer British and other European investors access to the increasingly popular timber asset class.
The new London-based subsidiary is still awaiting Financial Services Authority approval. The fund will invest in timber resources in Europe, the U.S. and Latin America.
Source: FINalternatives
October 19, 2010--Main results of the Council
The Council reached agreement on a draft directive on the management of hedge funds and other
alternative investment funds, with a view to concluding negotiations with the European Parliament
so as to allow the text to be adopted at first reading.
The draft directive is aimed at establishing EU rules for monitoring and supervising the risks posed
by such funds, whilst allowing fund managers to market their funds, subject to compliance with strict requirements.
Source: Council of the European Union
