The FCA has fined Barclays £40 million in total for its failure to disclose certain arrangements with Qatari entities in 2008. This follows Barclays’ decision to withdraw its referral of the FCA’s planned action to the Upper Tribunal. The action was based on findings which included that Barclays’ conduct in its October 2008 capital raising was reckless and lacked integrity – the FCA’s earlier press release is linked in the notes below. The FCA notes Barclays’ statement on this matter. Continue reading…

by Ajay Katara

Large financial institutions (LFI), defined as firms with $100 billion or more in assets, are supervised to enhance their resilience and reduce the likelihood of failure. This oversight also aims to limit the broader economic and financial system impact if such a firm experiences failure or significant weakness. Large banking organisations are classified into four categories, each with distinct regulatory requirements. Continue reading…

The Financial Stability Board (FSB) Regional Consultative Group for Europe (RCG Europe) met on 14 and 15 November in Munich, Germany. The meeting was hosted by the Deutsche Bundesbank and Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). On the first day, members participated in a workshop on the financial stability implications of private credit. Members discussed the drivers of growth of this form of credit and the benefits it brings to the broader economy. They also discussed the need to enhance understanding of potential risks, given limited data on the market, as well as existing regulations. Continue reading…

IBM (NYSE: IBM) and Pasqal have on 21 November announced an update to their intended collaboration to build new, integrated frameworks for quantum-centric supercomputing with Qiskit, the world’s most performant quantum software. The two companies will soon begin developing a unified programming model to facilitate seamless interoperability across different types of quantum computing hardware. This integrated architecture will work across IBM’s next-generation and utility-scale quantum computers, Pasqal’s neutral atom-based quantum devices, and classical high-performance computing (HPC) resources such as CPUs and GPUs. Continue reading…

The European Banking Authority (EBA) has appointed Kamil Liberadzki as new Director of its Economic & Risk Analysis Department. Kamil Liberadzki, who will be responsible for assessing and monitoring financial stability and the risks and vulnerabilities in the EU banking and financial sector, has taken up his new role on 18 November 2024. Continue reading…

The International Association of Insurance Supervisors (IAIS) Executive Committee has approved the final version of the Insurance Capital Standard (ICS) as a prescribed capital requirement for internationally active insurance groups (IAIGs), which will be recommended for adoption at the IAIS Annual General Meeting on 5 December 2024. Continue reading…

Mr Michael Schmid, National Member for Austria at Eurojust, has on 12 November been elected as the new President of the Agency. He has effectively taken up office on 15 November for a four-year term, replacing the current President, Mr Ladislav Hamran, who is completing his second and final term. Mr Schmid (40) has represented the Austrian judicial authorities at Eurojust as National Member since 2022. Previously, he was Deputy National Member at the Agency and Justice Counsellor at the Permanent Representation of Austria at the European Union in Brussels.

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The Commission has recently welcomed an agreement between the European Parliament and the European Council on the annual EU budget 2025. This budget will allow the EU to deliver on its political commitments, starting with the changes agreed in the mid-term revision of the Multiannual Financial Framework (MFF). The annual EU Budget for 2025 will amount to €199.4 billion. Continue reading…

The Financial Stability Board (FSB) has on 14 November published The Financial Stability Implications of Artificial Intelligence, a report outlining recent developments in the adoption of artificial intelligence (AI) in finance and their potential implications for financial stability. Widespread adoption and more diverse use cases of AI have prompted the FSB to revisit its 2017 report on AI and machine learning in financial services. Financial firms currently use AI mainly to enhance internal operations and improve regulatory compliance, but generative AI (GenAI) and large language models have given rise to new use cases, such as document summarisation, information retrieval, and code generation. Continue reading…