Financial Regulation International

Geneva, 16 Feb - Plans for the introduction of Basel 2 appear to have acquired widespread momentum, as indicated by the Basel-based Financial Stability Institute (FSI), based on a new survey of the state of play in major regions and by other specifically national information.

On 22 January 2007, the Banking (Amendment) Bill 2006 (the ‘Bill’) was passed in Parliament. The Bill was introduced on 8 November 2006 after a public consultation exercise in July/August 2006.

Karen Tiah, Allen and Gledhill, karen.tiah@allenandgledhill.com

Leonora Corden, director of Financial Sector Marketing, Royal Mail

Joanna Gray, University of Newcastle

The Basel II capital adequacy reforms, due to be implemented in Australia in January 2008, introduce the possibility of certain types of insurance products having a role as capital reduction tools under the applicable Australian regime. Dean Carrigan reviews some of the challenges this will create for authorised deposit-taking institutions.

The opening up of the market for equity market data raises the question of whether data will be sufficiently consolidated and of a high enough quality post-MiFID, or whether it will become too fragmented, thereby hindering price transparency and the implementation of best execution policies. This policy brief outlines the market for financial market data, the provisions of MiFID and the implementing measures regarding financial data and data consolidation. It also looks at the approaches taken by CESR, the FSA and the US authorities. It concludes that markets should be capable of adapting and that additional licensing requirements, such as those proposed by the FSA, are in fact premature and act as a barrier to the single market. Neither would a US-style monopoly consolidator be needed in this case.