EU Bank Liquidity, City Vacancies, Sebi Rule: Compliance

The European Union is considering letting banks deploy a wider range of asset-backed debt than permitted by international rules to meet liquidity requirements, as policy makers hunt for ways to boost lending.

The EU’s regulatory arm may propose that securitizations of loans to small businesses and consumers including car buyers should count toward the standard, according to a European Commission document obtained by Bloomberg News.

The securities would have to be of “high quality” to count, ruling out those generated from “loans to credit-impaired borrowers,” according to the document. And banks wouldn’t be allowed to count securities based on loans they or their affiliates had made.

The commission plans concern how to implement an international rule published in 2013 by the Basel Committee on Banking Supervision. The measure requires banks to have enough easy-to-sell assets to survive a 30-day funding squeeze and is set to begin phasing in next year.

Compliance Policy

India’s Sebi Proposes Rules to Cut Time Taken for Delisting

The Securities and Exchange Board of India proposed rules that would cut the time to delist companies.

The change, proposed in a discussion paper, suggests reducing the time for delisting after documents are filed to exchanges to 64 days from the current 137 days.

Public comment is sought by the regulator by May 30.

China to Offer Tax Incentives for Offshore Equipment Sector

China will offer tax incentives for research and development of offshore equipment as part of efforts to bolster its offshore equipment industry, according to a statement dated April 24 and posted yesterday on the Ministry of Finance website.

China will waive domestic manufacturing tariffs and import-related value-added taxes for the importing of some key parts, according to the statement.


Some German Banks Might Struggle in ECB Stress Test, Koenig Says

Bafin President Elke Koenig said she doesn’t expect major issues to emerge at German banks as a result of the first part of the European Central Bank’s Comprehensive Assessment, the Asset Quality Review.

“Our expectations for the stress test are somewhat mixed. The baseline scenario I would hope would not be a surprise for the German banks. It is at least conceivable that some banks would have problems withstanding the adverse stress test scenario,” Koenig said.

“I have stated numerous times that my expectations for the asset quality review for the German banks are cautiously optimistic,” Koenig said, adding that she does not expect “any great surprise.”


Two Ex-Qualcomm Sales Directors Charged With Insider Trading

Two former Qualcomm Inc. sales directors were charged with insider trading, allegedly making $230,000 in profit from trades in Atheros Communications Inc. when Qualcomm bought the company in 2011.

Derek Cohen and Robert Herman, both 52, were charged with four counts of securities fraud, according to a statement yesterday by the U.S. Attorney’s Office in San Diego. The Securities and Exchange Commission filed a parallel lawsuit against both men as well as a third former Qualcomm salesman.

Cohen has been arrested and pleaded not guilty yesterday, according to the statement. Herman is at large, prosecutors said.

“The defendants named in the complaint are no longer employed by Qualcomm,” Christine Trimble, a spokeswoman for the San Diego-based company, said yesterday in an e-mailed statement. The company has been fully cooperating with the government’s investigation, she said.

Cohen and Herman earlier told the company, which conducted an internal investigation of insider trading related to the Atheros deal, that they had learned about the planned acquisition from a New York Times story, according to the SEC complaint.

The case is U.S. v. Cohen, 14-cr-01202, U.S. District Court, Southern District of California (San Diego).

Comings and Goings

London’s Financial Vacancies Rose 67% in April, Survey Shows

Job vacancies at London’s financial-services companies climbed 67 percent last month as firms sought employees to manage increasing compliance demands from regulators, a recruitment survey showed.

Staff vacancies in London’s main financial district, known as the City, and elsewhere in the British capital increased to 8,955 last month from 5,355 in April 2013, the recruitment firm Morgan McKinley said yesterday in a statement.

Securities firms in the City have been expanding their compliance departments following probes by U.K. and other global regulators into the manipulation of benchmark interest rates, the alleged rigging in currency markets and money laundering.

Organizations are looking for risk and compliance specialists, Hakan Enver, operations director at Morgan McKinley Financial Services, said in the statement. Hiring has been concentrated among senior personnel because of increased regulations implemented by the Financial Conduct Authority, Enver said in the statement.

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