Will Brexit cause walls to collapse or only cracks to appear?

The Brexit topic continues to draw in the crowds at any seminar and this morning (31 January 2017) was no exception.  It was ‘standing room only’ at Slaughter and May’s client seminar titled: Tremors and Aftershocks: How to manage the impact of the Brexit earthquake and recent world events. How to manage the impact of the Brexit earthquake?  It was clear that we’re not yet sure exactly when the earthquake will happen, the magnitude, or even where the epicentre will be.  From a poll of attendees 37% thought it was too early to understand how Brexit was going to impact

Financial regulation – a step closer for corporates

I recently attended a roundtable to discuss the forthcoming UK Money Markets Code (which ironically will not cover MMFs).  The opening sentence uttered by a banker who was co-hosting the meeting was “this is not regulation by the back door”.  I listened, argued, tried to believe it, but don’t. If bankers want to impose ‘soft regulation’’ on themselves that is fine (and arguably laudable) but my real concern is that old saw of ‘unintended consequences’…  Basically any corporate who is “regularly active” in placing money on deposit, investing in repos or borrowing and lending securities will be caught by the

Regulatory Update from the European ACT – Nov 2016

The EACT’s monthly update can be found here. EU members are reminded that their UK operations will continue to be required to comply with EU regulations until Brexit occurs, and should expect much of the EU originated regulation to continue once completed. The UK is separately a member of the G20 and that organisation is the ultimate source of much of the change which has been brought into effect in the UK since 2008 albeit through the EU. Notable exceptions are: Financial Transaction Tax: FTT is being considered by 10 member states which do not include the UK and so

Technical update from the ACT Asia conference 2016

Top notes from this year’s Asia Treasury Leaders’ Forum conference hit on corporate treasury in the region, uncertain times and investing cash in China. Last week was my third appearance at the ACT’s Asia conference and I have to say it gets bigger and better each year. There was definitely a real “buzz” in the exhibitors’ hall and the sessions were well attended. Delegates stayed all day instead of “cherry-picking” sessions as they tend to do in Europe, but these were the key messages and “take-a-ways” I picked up from the three plenary sessions: 1. Opening keynote: Making Hong Kong

ACT: the corporate voice in developing UK Markets Standards

In July 2016, HM Treasury, the Bank of England, and the FCA published their Fair and Effective Markets Review Implementation Report (FEMR). FEMR is part of the UK’s response to the 2008 financial crisis and seeks to restore trust in Fixed Income Currency and Commodities (FICC) markets. As customers and counterparties of the banks, corporate treasurers are users of the FICC markets. One of the main recommendations of the FEMR was the establishment of the FICC Market Standards Board (the FMSB). The ACT is engaged with the FMSB. Our Chief Executive Colin Tyler sits on the FMSB Advisory Council, and ACT

The end of notional pooling?

A recent decision by the IFRS Interpretations Committee (IFRIC) could potentially have significant implications for notional cash pooling if cash balances are not expected to be physically settled on a net basis at reporting date. IFRIC responded to a specific submission in respect of a cash pooling arrangement where the bank and the group have the legally enforceable right to set off account balances, but regular physical transfers of balances into a single netting account are not performed at the reporting date.  IFRIC’s decision noted that the group’s bank account balances would move in the normal course of business between

Policy and Technical insight – March 2016

Has your bank informed you? Cut-off time extension for GBP CHAPS and CREST payments From 20 June 2016, the CHAPS and CREST settlement days will be extended to align more closely to the business day. In theory, this could result in greater flexibility for end users; in practice, this extension doesn’t necessarily change anything operationally, but your cash management banks should have been in touch with you to explain how your cut-off times for CHAPS payments may alter. If they have not, it is worth contacting them to understand how any changes impact your day to day operations as they

Policy and Technical insight – February 2016

Bank resolution is being tested before ‘bail in’ implemented A week where old fashioned means of resolving €200bn of Italian bad loans came to the fore: they are to be sold with a market price government credit guarantee. The government felt pressed to stop a loss of faith in banks when it never had the UK option of borrowing to recapitalise them. Market making – thin end of the regulatory wedge Reuters bring attention to withdrawal of market makers from government bonds. Are we witnessing waning interest as MiFID II transparency rules loom over the horizon, and CRDIV requirements make