News Centre

The EBA Observes An Increase In High Earners In 2018 And The Persistence Of Differences In Remuneration Practices Across The EU

Date 22/07/2020

The European Banking Authority (EBA) published today its Report on benchmarking of remuneration practices in EU banks for the financial years 2017 and 2018 and high earners data for 2018. The data shows that in 2018, the number of high earners in EU banks receiving a remuneration of more than EUR 1 million increased slightly by 1.58%, from 4 861 in 2017 to 4 938 in 2018. Over a longer period of time, the number of high earners increased significantly (+44.09%), from 3 427 in 2010 to 4 938 in 2018. The average ratio of variable to fixed remuneration for all high earners in the EU/EEA increased over time from 127% in 2014 to 139% in 2018. The observed remuneration levels of high earners reached up to EUR 39 million.

tZERO Partners With Aspen Digital Inc. To Enable The Trading Of The St. Regis Aspen Digital Security

Date 22/07/2020

ZERO, a leader in financial innovation and liquidity for private companies, announced today that it has entered into a partnership with Aspen Digital Inc. to enable its digital security (ASPEN) to trade on the tZERO ATS. The ASPEN shares represent $18 million of indirect ownership in the St. Regis Aspen Resort, a five-star, 179-room luxury hotel located in Aspen, Colorado.

EBA Is Looking Into Ways To Reduce Reporting Costs

Date 22/07/2020

• The EBA study of the cost of compliance with supervisory reporting requirements is an important element in the EBA work on proportionality in supervisory requirements.
• The study aims to better understand reporting costs and identify ways to reduce the costs by 10 – 20% at least for small and non-complex institutions.
• The contribution of the EU banking industry to the study is essential, and the EBA invites all EEA banks and other interested stakeholders to answer an EBA questionnaire or submit ‘fact-finding’ case studies by October 2020.

Statement At Open Meeting On Exemptions From The Proxy Rules For Proxy Voting Advice And Supplement To Commission Guidance Regarding Proxy Voting Responsibilities Of Investment Advisers, SEC Commissioner Hester M. Peirce, July 22, 2020

Date 22/07/2020

Proxy voting advice businesses play an important role in our marketplace, a role that carries with it tremendous power.  One root of that power is a 2003 Commission rule that required funds to publish their votes.  That rule pushed voting to the front burner for fund advisers, regardless of whether voting was a task that the funds and their shareholders wanted advisers to spend a lot of time on.  Advisers looking to check the voting compliance box with as little headache as possible turned to proxy voting advice businesses for help, a move enabled by staff no-action positions.  What followed was an outsourcing of the vote; funds’ voting decisions were handed over to proxy advisors, whose consequent power over public companies grew.

EBA Consults On Guidelines Specifying The Conditions For The Substitution Approach In The Context Of “Tri-Party Transactions” For Large Exposures Purposes

Date 22/07/2020

The European Banking Authority (EBA) launched today a consultation detailing on the three conditions institutions should comply with when they decide to make use of the alternative treatment with regard to tri-party repurchase agreements facilitated by a tri-party agent. The consultation runs until 22 October 2020.

Open Meeting To Adopt Amendments To The Proxy Solicitation Rules, SEC Commissioner Elad L. Roisman, July 22, 2020

Date 22/07/2020

Thank you, Chairman Clayton.  I want to express my gratitude for your continuing commitment to improving the proxy system, as well as for your thoughtful leadership throughout the process of developing this rulemaking in particular.  Thank you also to Director [Bill] Hinman, Val Afshar, Director [S.P.] Kothari, Director [Dalia] Blass, and Tara Varghese for your presentations and all of the incredible work you and your teams have put into these recommendations.  You should be very proud. 

EBA Consults On Draft Technical Standards On Default Probabilities And Loss Given Default For Default Risk Model Under The Internal Approach For Market Risk

Date 22/07/2020

The European Banking Authority (EBA) launched a consultation on draft Regulatory Technical Standards (RTS) on default probabilities (PDs) and losses given default (LGDs) for default risk model for institutions using the new Internal Model Approach (IMA) under the Fundamental Review of the Trading Book (FRTB). These draft RTS are part of the deliverables included in the roadmap for the new market and counterparty credit risk approaches published on 27 June 2019. The consultation runs until 22 October 2020.

Paying More For Less: Higher Costs For Shareholders, Less Accountability For Management, SEC Commissioner Allison Herren Lee, July 22, 2020

Date 22/07/2020

At the proposing stage for these rules, I observed that they would harm the governance process and suppress the free and full exercise of shareholder voting rights. Unfortunately, that is still the case with today’s final rules.

Pending Applications By EU Administrators Of Benchmarks – Article 51.1 Of BMR

Date 22/07/2020

The following table includes the information shared by National Competent Authorities with ESMA in relation to the applications for authorisation and registration by EU administrators under Article 51.1 of BMR for which, as of 01.01.2020, the decision by the relevant competent authority is still pending.

EBA: Consultation Paper On Guidelines Specifying The Conditions For The Application Of The Alternative Treatment Of Institutions’ Exposures Related To “Tri-Party Repurchase Agreements” For Large Exposures Purposes (EBA/CP/2020/13)

Date 22/07/2020

The European Banking Authority (EBA) launched today a consultation detailing on the three conditions institutions should comply with when they decide to make use of the alternative treatment with regard to tri-party repurchase agreements facilitated by a tri-party agent. The consultation runs until 22 October 2020.