A major tax swindle involving sales of fuels has been brought to an end by the German authorities, with international judicial support in 11 European countries coordinated by Eurojust. During an action day, two suspects were arrested in Austria and Poland, allegedly the leaders of a criminal network that defrauded the German tax authorities of an amount of close to EUR 8 million. A total of 40 places have been searched in 11 countries, including 10 in Germany, in cities such as Hamburg, Bremen, Duisburg and Freiburg. Continue reading…

by Michel Klompmaker

As is known, a large settlement of 775 million euros was reached on 3 September 2018 between ING Bank and the Public Prosecution Service in the Netherlands. This large settlement came to a standstill and ING Bank paid the amount nicely. In other words, ING’s shareholders paid for this with some having felt disadvantaged. In the meantime, it has become known that the Court of Appeal in The Hague is of the opinion that the former CEO of ING, Mr. Ralph Hamers, should be prosecuted. Ralph Hamers is now the new CEO of the large Swiss bank, UBS. We wondered how the “fit and proper” test by the Swiss regulator took place in this regard and asked a few questions in writing to FINMA, the Swiss regulator. Continue reading…

On December 30, a summit meeting took place between the EU and the People’s Republic of China, with the EU represented by Charles Michel and Ursula von der Leyen and China by its communist capitalist leader Xi Jin Ping. The agreement concluded on December 30 is in fact the result of many negotiations. As far as possible with a country like China, it is better that a few things are entrusted to paper. Still, there are still some questions left and the answers to them can be found below. The agreement came about under the German Presidency of the EU, perhaps with the necessary pressure behind the scenes from the German automotive industry. Continue reading…

The Board of the International Organisation of Securities Commissions recently published a report that seeks to assist regulators in responding to the retail market conduct issues caused by stress events such as the current COVID-19 pandemic. Enhancing investor protection and investor confidence in the integrity of securities markets are fundamental objectives for IOSCO. The report examines common retail misconduct risks that have arisen in the financial services industry during the pandemic and sets out measures to assist authorities in responding to this unprecedented and challenging environment. The report, prepared by IOSCO’s Retail Market Conduct Task Force (RMCTF), shares preliminary findings and observations of IOSCO member experiences and identifies the common drivers of firm and retail investor behaviour, which together create increased opportunities for potential misconduct in periods of stress. Continue reading…

The European Union (represented by President of the European Council, Charles Michel and President of the European Commission, Ursula von der Leyen) held a leaders’ meeting with China (represented by President Xi Jinping) via video conference on 30 December 2020. The meeting provided an opportunity to follow up on the 22nd EU-China Summit (22 June) and the Leaders’ Meeting (14 September) originally foreseen in Leipzig. It is part of continued engagement of the European Union with China. EU leaders had a strategic debate on China at the October European Council which was prepared by in depth consultation at EU leaders’ level. In addition to this meeting, an exchange took place between the French President Emmanuel Macron, the German Chancellor Angela Merkel and President Xi as a follow up of their meeting inParis in March 2019.The meeting focused in particular on progress achieved on negotiations on investment. Following intensive negotiations carried out by the European Commission on the EU’s side, the EU and China concluded in principle the negotiations for a Comprehensive Agreement on Investment(CAI). This delivers on the commitment made at the EU-China summit in April 2019 where the two sides agreed to aim for conclusion of negotiations by the end of 2020.
Continue reading…

The Financial Conduct Authority (FCA) has fined TFS-ICAP Ltd, an FX options broker, £3.44m for communicating misleading information to clients. Between 2008 and 2015, brokers at TFS-ICAP carried out the practice of “printing” trades. This involved brokers communicating to their clients that a trade had occurred at a particular price and/or quantity when no such trade had actually taken place. TFS-ICAP brokers, across multiple broking desks, did this openly and over a prolonged period. Printing trades sought to encourage clients to trade when they might not have done, in order to generate business for TFS-ICAP. As such, TFS-ICAP did not observe proper standards of market conduct. Continue reading…

A few days ago, the Commission began setting out its approach to undertake a review of the EU’s implementation of the United Nations Convention against Corruption (UNCAC). As a party to the Convention, the EU must evaluate how its rules and practices comply with the anti-corruption principles, objectives and requirements under the Convention to identify any deficiencies that require legislative, institutional and practical reforms. The Commission informs all EU institutions of its intention to launch the review process ahead of the UN General Assembly Special Session against Corruption 2021; it sets out a framework to facilitate the review to allow swift progress in fulfilling all necessary legal obligations, in full respect of the principle of sincere cooperation and administrative autonomy of the institutions; and invites the EU institutions to participate and cooperate at all stages of the process.

Continue reading…

As coronavirus continues to disrupt the corporate landscape, a new survey suggests businesses across Europe have significantly shifted their attitudes towards risk. The Chartered IIA’s annual Risk in Focus 2021 report tracks the risks facing organisations year-on-year as ranked by 579 Chief Audit Executives (CAEs). For the third year running, cybersecurity has topped the list of risks, with almost four in five (79%) businesses citing it as one of the major risks they face. More than a quarter (27%) singled cybersecurity out as the number one risk, amid a heightened awareness of the IT and security threats posed by widespread remote working, including an increase in phishing attempts and malware infections. The report also points to ongoing concerns around companies’ ability to remain solvent as the world enters a recession. Amid depressed demand, financial, capital and liquidity risks have jumped up the agenda, with more than two in five (42%) of those surveyed including these within their top five risks – a 40% increase on last year. Continue reading…

Recently, the European Commission launched the New Consumer Agenda to empower European consumers to play an active role in the green and digital transitions. The Agenda also addresses how to increase consumer protection and resilience during and after the COVID-19 pandemic, which brought significant challenges affecting the daily lives of consumers. More concretely, the Agenda puts forward priorities and key action points to be taken in the next 5 years together with Member States at European and national levels. This will, among other things, include a new legal proposal aiming to provide better information on sustainability to consumers, adapting existing legislation to the digital transformation as well as an action plan on product safety with China. Continue reading…

Execution algorithms (EA), intended to purchase or an amount defined in advance of foreign trade as laid out in user instructions, have been experiencing an increase in use in the midst of a rising decentralized and divided trading scheme as indicated by a report distributed today by the Bank for International Settlements (BIS) Markets Committee. This has subsequently aided in upholding pricing and market functioning. However, this also has the possibility of forming new risks, as stated in the report. Furthermore, the report also looks to analyze the drivers and ramifications of the rise in execution algorithm usage in the foreign exchange markets. It draws on a unique survey of 70 refined market partakers from around the world with a large industry wide effort, and providers a particular perspective focused on the use of EAs, also by central banks. Continue reading…