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Presents a Green Paper adopted by the Commission of the European Communities which deals with a number of consumer policy issues in the financial services sector. Information on various financial services directives; What the Green Paper covers.

Focuses on the Verbraucher-Zentrale Nordrhein-Westfalen and its opinion of a Green Paper by the European Commission on how to meet consumers' expectations in the financial services sector. What is needed in the financial services sector; Questions raised regarding the paper; Faults of the Green Paper; How the position of consumers can be improved.

Presents information on the treatment of financial services in the single market of the European Union, while focusing on the types of services offered in the United Kingdom's market. Details on the issues which are not addressed by the Commission's Green Paper `Financial Services: Meeting Consumer' Expectations'; What are the characteristics of financial services; Information on the role of the financial adviser.

The intended automation in the financial industry creates a proper area for artificial intelligence usage. However, complex and high regulatory standards and rapid technological developments pose significant challenges in developing and deploying AI-based services in the finance industry. The regulatory principles defined by financial authorities in Europe need to be structured in a fine-granular way to promote understanding and ensure customer safety and the quality of AI-based services in the financial industry. This will lead to a better understanding of regulators' priorities and guide how AI-based services are built. This paper provides a classification pattern with a taxonomy that clarifies the existing European regulatory principles for researchers, regulatory authorities, and financial services companies. Our study can pave the way for developing compliant AI-based services by bringing out the thematic focus of regulatory principles. [ABSTRACT FROM AUTHOR]

The various systems that provide services to the financial industry for trading, clearing and settlement, matching of financial transactions and depository functions are known as financial market infrastructures (FMIs). Within Europe, such FMIs include the Eurosystem's TIPS, TARGET2 and T2S. TARGET2 will be superseded in March 2023 by a new real-time gross settlement system called T2, with a view to optimising liquidity management across all TARGET services. For a largescale implementation such as this it is important to provide an onboarding plan for customers. To this end, a set of milestones to guide system participants towards the intended go-live of November 2021 (now postponed to March 2023) has been published. This paper examines the milestones document through the lens of project management theory and recommends the use of said document, and the milestones within, as a template for participants onboarding to any FMI. FMI operators will also find the document useful when preparing to onboard their own customers. [ABSTRACT FROM AUTHOR]

The article presents an account of the expansion of the European banks in the Brazilian banking sector. Restriction was enforced on the entry of foreign financial institutions into Brazil during the 1970s and 1980s. The Brazilian government withhold the restriction and allowed some foreign banks in order to permit the acquisition of a few problematic banks and also to strengthen the national banking sector due to the banking crisis caused by a contagion from Mexican financial crisis in 1995. The process of banking mergers in the European financial system under the European Union (EU) has been one of main factors behind the expansion of some European banks in Brazil.

Since its establishment in 2011, the European Securities and Markets Authority (ESMA) has considerably shaped the regulation and supervision of European capital markets. Being part of the European System of Financial Supervision (ESFS), the three European Supervisory Authorities (ESAs) - ESMA, the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) - share its main objective: safeguarding the stability of the European financial system. ESMA however is outstanding with respect to its role as direct supervisor particularly of credit rating agencies (CRAs) in the European Union (Union). Whereas many analyses of the regulatory and supervisory regime for CRAs in the Union mainly focus on its design and effects on CRAs and the credit rating market the present paper aims to focus on ESMA as direct supervisor in this sector. The paper is organised as follows. It starts with some methodological preliminaries and remarks on the role of legal academia in the realm of financial markets regulation and supervision thereby aiming to put the paper in the broader context of the relevant legal literature. Against the backdrop of some fundamentals on rating-directed regulation and supervision it discusses the fitness of ESMA's institutional set-up for its role as direct supervisor of CRAs in the Union. The paper then explores and assesses the performance of ESMA as direct supervisor of the CRAs in the Union since 2011. This is complemented by some observations as to ESMA's regulatory powers and performance in the European sector of CRAs. The paper then concludes with an outlook arguing in particular that ESMA in its role as direct supervisor of CRAs in the Union might well be considered a tried and tested example of a legitimate agencification at Union level paving the way towards the concept of a single capital markets super visor. [ABSTRACT FROM AUTHOR]

This issue of the European Business Organization Law Review is devoted to fundamental problems in the field of retail financial services as have become particularly clear since the recent disruption of the financial markets. Ultimately, these issues lead to line-drawing problems and policy choices about investor and consumer protection which are tackled from a legal and an economic perspective respectively. The articles in this issue have originated from papers and proceedings of the joint IMFS (Institute for Monetary and Financial Stability) and LEMF (Doctorate/PhD Program ‘Law and Economics of Money and Finance’) conference on ‘Retail Financial Services after the Crisis: Legal and Economic Perspectives on Investor and Consumer Protection’, which took place at the House of Finance, Goethe University of Frankfurt on 20 and 21 January 2012. [ABSTRACT FROM AUTHOR]

The article discusses the concept of achieving a single European mortgage credit market. Issues surrounding this concept including market access, supervisory challenges and consumer confidence and protection are discussed as well as the European Commission's 2005 Green Paper on Mortgage Credit. Legal and non-legal barriers to the implementation of a single European Union mortgage credit market are also evaluated.

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This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping the financial performance of European companies operating in the financial services sector. We exploit data selected from Thomson Reuters Eikon database in 2020 for the last fiscal year 2019 (FY0) on a longitudinal sample of 144 companies with the head offices in Europe (25 countries). Following an original empirical approach based on two modern financial econometric techniques, namely structural equation modelling (SEM) and network analysis through Gaussian graphical models (GGMs), the research endeavor outlines the decisive importance of an optimal board size, enhanced management skills, upward gender diversity (encompassed by women participation on board management), and structure (mainly a two-tier type, one management board, and a distinctive supervisory board) as fundamentals of risk management strategies, leading to improved financial achievements and a higher profitability for the analyzed companies. [ABSTRACT FROM AUTHOR]

The reform and development of the financial sector was one of the most significant challenges that the former socialist countries faced during their transition to a market economy. At the start of this transition, their financial system was underdeveloped and centralised (monobank), where the central bank of each economy also functioned as a commercial bank. The restructuring, integration and development of the financial sector to enhance viability and enable it to respond to new demands was imperative, particularly for economic growth and the convergence of these economies with the developed economies of the region. This process of financial integration suffered a powerful shock with the economic crisis transmitted to the region in 2009. The initial aim of this paper is to highlight the problems created after the global economic crisis affecting the financial institutions of the former socialist countries of South-eastern Europe, as well as the problems that already existed, though not apparent, and were nevertheless exacerbated by the outbreak of the crisis. An attempt to investigate the role of the financial sector, dominated by the banking sector, follows, with regard to achieving macroeconomic equilibrium among the economies of the countries in the region and the potential for sustaining it in future as part of a path to growth. To fully satisfy this goal, we propose that it is preferable to avoid a linear approach to the issue, abandoning equilibrium theory to adopt an analysis inspired by the method of cumulative causation, based on the work of Nicholas Kaldor. Our analysis allows us to postulate that, in a post-crisis period, conditions prevail for the potential appearance of future structural impasses of a cumulative nature, which could lead to a systemic crisis and leave the development process of the region's economies exposed. [ABSTRACT FROM AUTHOR]

Fifteen countries from CEE region are analyzed in the paper within the period from 2005 till 2010 with the aim of determining the relation between capital availability and economic growth. Moreover, the analysis uses the correlation and panel regression as main tools for confirming the hypotheses. Furthermore, within the paper financial inclusion and availability of financial services as one of the most important topics within EU are being analyzed. The main focus is on empirically investigated correlation between financial development and faster current and future rates of economic growth, with special focus on physical capital accumulation, and economic efficiency improvements. Finally, there is a link established between the growth of the citizens' wealth and economic development of the country and the availability of bank services and foreign capital inflow as well. Consequently, the obtained results indicate that the effects of world economic crisis influenced the citizen's welfare starting from 2009. [ABSTRACT FROM AUTHOR]

Using a quantile function-based time series model, this paper illustrates a risk measurement to characterise the effects of institutional changes in major European financial markets. The paper presents examples based on major market indices to further address the influences behind the establishment of the European Central Bank. As this model allows more flexibility than classic generalised autoregressive conditionally heteroskedastic (GARCH) models, its validity and robustness are analysed theoretically and illustrated empirically through comparisons with multivariate GARCH models. [ABSTRACT FROM AUTHOR]

This paper analyzes the determinants of returns generated by mature European private equity funds. It starts from the presumption that this asset class is characterized by illiquidity, stickiness, and segmentation. Given this presumption, Gompers and Lerner (2000) have shown that venture deal valuations are driven by overall fund inflows into the industry that yield the putative ‘money chasing deals’ phenomenon. It is the aim of this paper to show that this phenomenon explains a significant part of the variation in private equity funds' returns. This is especially true for venture funds, as they are affected more by illiquidity and segmentation than buy-out funds. In the context of a WLS-regression approach the paper reports a highly significant impact of total fund inflows on fund returns. It can also be shown that private equity funds' returns are driven by GP's skills as well as stand-alone investment risk. In a bootstrapping context we can show that most of these results are quite stable. [ABSTRACT FROM AUTHOR]

The Markets in Financial Instruments Directive (MiFID) will result in extensive changes to the regulations applicable to financial services firms in Europe. One area in which changes have been made is the keeping of records -- but how extensive are those changes? An analysis of the MiFID rules and the comments emanating from the Commission of European Securities Regulators (CESR) demonstrates that, in addition to a wide range of explicit record-keeping requirements, firms are also specifically obliged to keep any records that enable the authorities to monitor regulatory compliance and this patently encompasses a very broad range of records. This theme, whereby the regulated community is obliged to provide to the regulator tools designed to assist the regulator to monitor compliance, can also be seen in the Financial Services Authority (FSA) consultation paper on the recording of telephone conversations for the purposes of combating market abuse. Consequently, regulated firms must, more than ever, look beyond specific record-keeping requirements and ensure that they are able -- at all times and in all respects -- to produce the records necessary to demonstrate compliance with the myriad regulations to which they are subject. [ABSTRACT FROM AUTHOR]

The new 'best execution' requirements coming into force in Europe on 1st November, 2007, have been described as the biggest change to financial services since London's 'Big Bang' of 1986. The intention of the requirements is to create a unified pan-European dealing environment that will offer clients better transparency, liquidity and access to trading information across Europe than that which is currently available. It also aims to make the definition of 'best execution' more workable for firms and more relevant to clients. This paper argues that, while the new requirements better reflect the realities of what 'best execution' actually means for clients, there are a number of unintended consequences that will cause fundamental changes to the trading landscape. This will affect the work of compliance teams, which will need to take a more holistic, lateral-thinking and commercial approach to working with their dealers and investment managers, in order to ensure that they take full advantage of the opportunities that this presents. This paper examines the European consequences, with a particular focus on the impact for buy-side firms that are subject to Financial Services Authority (FSA) regulation. [ABSTRACT FROM AUTHOR]

This paper attempts to sum up the major challenges for the exchange and post-trade industry that are posed by the European Code of Conduct for Clearing and Settlement. The Code was adopted by the three major associations representing the cash equity trade and post-trade industry - the Federation of European Securities Exchanges (FESE), the European Association of Central Counterparty Clearing Houses (EACH) and the European Central Securities Depositories Association (ECSDA) - and accepted by the European Commission as an alternative to legal measures at the end of 2006. The first stage of its implementation started in December 2006 and the last stage is scheduled for completion in December 2007. For a better understanding of the current tasks that need to be solved by each individual player in the industry, the paper first provides the context of the better regulation principle. It then proceeds by giving an overview of the industry and by tracing the regulatory developments that led to the proposal of a Code. Finally, the paper discusses current challenges faced by the securities industry that are associated with the implementation of the Code. [ABSTRACT FROM AUTHOR]

Discusses the papers presented at the sixth annual conference on financial services in Washington, D.C. in October 2002. Information on why stock prices of multiproduct firms sell at discount relative to firms with more product or service lines; Views of speaker Arnoud Boot on the condition of the financial services industry in the U.S. and Europe; Challenge for regulators in emerging financial service markets; Solutions to problems encountered with the use of the silo approach to industry regulation.

Purpose – The purpose of this paper is to analyse the importance of interbank connections and shocks on banks’ capital ratios to financial stability by looking at a network comprising a large number of European and UK banks. Design/methodology/approach – The authors model interbank contagion using insights from the Susceptible Infected Recovered model. The authors construct scale-free networks with preferential attachment and growth, applying simulated interbank data to capture the size and scale of connections in the network. The authors proceed to shock these networks per country and perform Monte Carlo simulations to calculate mean total losses and duration of infection. Finally, the authors examine the effects of contagion in terms of Core Tier 1 Capital Ratios for the affected banking systems. Findings – The authors find that shocks in smaller banking systems may cause smaller overall losses but tend to persist longer, leading to important policy implications for crisis containment. Originality/value – The authors infer the interbank domestic and cross-border exposures of banks employing an iterative proportional fitting procedure, called the RAS algorithm. The authors use an extend sample of 169 European banks, that also captures effects on the UK as well as the Eurozone interbank markets. Finally, the authors provide evidence of the contagion effect on each bank by allowing heterogeneity. The authors compare the bank’s relative financial strength with the contagion effect which is modelled by the number and the volume of bilateral connections. [ABSTRACT FROM AUTHOR]

While the financial markets have to face systemic and systematic risks, especially the insurance industries, the national supervisory authorities intend to implement regulation systems as uniform as possible at regional level and in the same time as conservatory as possible from the point of view of the risks accepted. The present paper intends to accurately analyze the regulation systems of important insurance markets (as tradition or volume of premiums) - such as RBC, SST, Solvency II in order to stress the similarities of these models but more important the differences that generated a different rigidity degree of the insurance companies, in other words, a different minimum capital requirement. The paper intends to illustrate the financial and organizational impact of the European model Solvency has on the insurance companies, through its supplemental requirements, introduced by the supervisory authorities as a reaction to the recent financial crises. [ABSTRACT FROM AUTHOR]

The division of responsibilities in the regulation and supervision of financial markets between 'public' regulatory agencies and 'private' market actors is not fixed; it has radically changed across time. This paper argues that the financial crisis of 2007-2009 has triggered the latest turn in the 'public-private' divide in the regulation of finance. Focusing in particular on the extensive reforms that have been introduced in the regulation of over-the-counter derivatives, credit rating agencies and hedge funds in Europe and internationally, this paper argues that the response to the financial crisis has brought to a halt the reliance on self-regulation and market discipline as primary regulatory mechanisms that had characterised the approach of regulators prior to the crisis. However, while public regulatory agencies have consolidated in their hands the authority to regulate and oversee markets previously left outside their regulatory oversight, the content and the purpose of their regulatory intervention continue to present significant element of continuity with the pre-crisis regulatory model. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to contribute to two related contemporary debates on the changing views of the employment relation and on the adoption of telework as a new work practice by analyzing line managers' general telework-attitude formation processes, and possible outcomes in concrete request situations, mirroring managers' views of the employment relationship. Design/methodology/approach – This multi-method study among 65 managers in six financial-sector organizations comprises two parts. The interview part focuses on managers' arguments for or against telework in their departments, and how these are weighed in the telework-attitude formation process. In the vignette study, managers assess their attitudes towards specific, hypothetical, but realistic telework requests of fictive employees in their departments. Findings – Combining the results of both studies, it is shown that the governance view dominates. Some managers, however, consider telework an "idiosyncratic deal." Particularly in telework-request situations, also the exchange view enters into the managers' perceptual frames. In order to decrease managers' ambivalence towards telework, the human resource management (HRM)-system needs to be internally consistent and based on a view of the employment relationship which stresses commitment and trust as guiding principles, rather than control and coordination. Originality/value – Employing a "configurational approach to strategic HRM," this paper focuses on the importance of the "embeddedness" of telework practices in larger HRM-systems in general, and the role of cultural obstacles in particular. Telework arguments are considered the HR principles guiding the telework-attitude formation process, and mirroring managers' views of the employment relationship as part of their workforce philosophies. [ABSTRACT FROM AUTHOR]