EMIR update on clearing thresholds

On 28 May 2019, the European Markets and Securities Authority (ESMA) updated its guidance on the calculation of the clearing thresholds for Non-Financial Counterparties (NFCs) in light of EMIR Refit publication. The updated Q&A clarifies the notification procedure for NFCs as to whether or not they exceed or no longer exceed the clearing thresholds and reduces the reporting burden on NFCs. Key messages are as follows: On the date of entry into force of EMIR Refit (17 June 2019) NFCs will need to have calculated their aggregate month-end average position for the previous 12 months. NFCs exceeding the clearing thresholds

Touching base with our UK treasury network in the South West

The ACT treasury network (South West England) met in Cirencester in May and I was invited to attend and share what the Policy and Technical team have been working on. It was my first meeting with the group and I found it a highly informative session. There were members from a range of organisations – including US inbound businesses, manufacturing and retailers, with teams as large as 8 and as low as 1! A number of topics were discussed at the meeting and it was great to see members sharing their experiences to help others and offer support with materials

The impact of incremental borrowing rates (IBR) on new lease accounting requirements

This article was written by Yon Valtchev, Markets Specialist at Bloomberg. Determining the appropriate discount rate under ASC 842 and IFRS 16 has proven to be more challenging than originally thought. While conceptually the accounting guidelines are straightforward, once market participants begin to search for data to substantiate the analysis, it quickly becomes evident that the data is not readily available and, in some cases, is missing altogether. The evolution of the accounting standards In moving towards global accounting standards, the Financial Accounting Standards Board (FASB) in the U.S. and the International Accounting Standards Board (IASB) have been working together

How treasurers have helped insurance and asset management businesses restructure

I was asked recently by PwC to present to an audience of insurers and asset managers on Brexit. To prepare for the talk I reached out across my network and am grateful for comments from RSA, Shroders, Aberdeen Standard, Chubb and Aspen amongst others. Below are key messages. What has the market been working on? There seems to be an acceptance that existing passporting rights for financial services firms will cease once the UK leaves the EU (with or without a deal). As a result, firms have been setting up companies within the EU27 to enable them to continue to

Tech innovation catch-up tops CFO to-do list in 2019

This article was written by Amanda Iacone from Bloomberg Tax. It appeared first on the Bloomberg Terminal. Innovations like data analytics and automation aren’t reaching corporate finance as quickly as CFOs and controllers would like, prompting them to make a big tech push in 2019. Just 13 percent of controllers and chief financial officers say their teams use robotics process automation. An even smaller group—10 percent—say they have the right skills on their teams to adopt and use emerging technologies, according to a recent joint survey by the Association of International Certified Professional Accountants and Oracle Corp. The Institute of

Tackling the complexity of KYC

This article was written by Lisa Roitman, regulatory compliance workflow specialist and business strategist in Bloomberg’s Enterprise Data department. Evolving regulation and geopolitical conditions have changed operational dynamics and dramatically increased Know Your Customer (KYC) burdens on market players. Financial Services firms face increased pressure to conduct ongoing KYC, draining treasury operations resources. It’s estimated that treasury teams at multi-national corporations spend upwards of 25-hours-a-week tackling KYC requests, often on repetitive and administrative tasks, according to a NeuGroup study. Increasingly, corporate treasurers highlight KYC as one of their most significant pain points, frustrated by the consumption of time, human capital

Addressing the UK’s impending exit from the EU

With the 29 March deadline fast approaching, here’s an update of Brexit activities the Policy & Technical team have been involved in. The Q&As undertaken with the CBI and with support from the FCA and other key organisations (such as ICMA) have been updated to reflect the latest position on key issues such as contract continuity, SEPA access and the rules for financial institutions that do not apply to join the UK’s Temporary Permissions Regime. Our ongoing Brexit readiness poll remains open and we request members to continue to update it with their latest position. Over the last few weeks

Operational Resilience – building a resilient treasury function

‘Operational Resilience’ is the subject of an important new Discussion Paper (DP1/18) issued by the Bank of England and Financial Conduct Authority, but which has important implications for treasurers of all types of businesses that are subject to, and need to manage, operational risk. Some background and guidance is set out below. Over the years since the financial crisis, a number of high-profile operational failures and cyber-attacks have led the Bank to believe that firms were operationally under-prepared for scenarios that could affect their ability to deliver vital business services. The authorities are concerned that operational risks could threaten not