La Commission européenne a lancé un appel à contributions et une consultation publique le mois dernier, en vue de l’adoption éventuelle d’une directive visant à s’attaquer au rôle des facilitateurs de la fraude fiscale et de la planification fiscale agressive dans l’Union européenne (Securing the Activity Framework of Enablers - SAFE).
Which trends will define the financial services industry in the coming years? This is undoubtedly a tricky yet essential question for a leading financial center like Luxembourg.
On the occasion, Payments Association EU Vice-Chairman & General Manager Thibault de Barsy welcomed to the ICT Spring FinTech Summit renowned Tech players such as eBay Payments, Visa, Zoom and Web3 Foundation.
Transfers of crypto-assets will be traced and identified to prevent money laundering, terrorist financing, and other crimes, says the new legislation agreed on Wednesday.
While cryptocurrencies seem to be on the rise again after trading in the red for months, financial institutions express their concern about their high volatility and are already working on EU regulation to mitigate the risks.
Following the European Commission’s Call for Advice on digital finance and related issues in February 2021, the European Banking Authority (EBA) recently published its report on non-bank lending.
Russia’s aggression in Ukraine is causing enormous suffering. It is also affecting the economy, in Europe and beyond. The conflict and the associated uncertainty are weighing heavily on the confidence of businesses and consumers. Trade disruptions are leading to new shortages of materials and inputs. Surging energy and commodity prices are reducing demand and holding back production. How the economy develops will crucially depend on how the conflict evolves, on the impact of current sanctions and on possible further measures. At the same time, economic activity is still being supported by the reopening of the economy after the crisis phase of the pandemic. Inflation has increased significantly and will remain high over the coming months, mainly because of the sharp rise in energy costs. Inflation pressures have intensified across many sectors.
The CSSF would like to bring to the attention of financial market participants and financial advisers the Updated Supervisory Statement of the Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – hereinafter referred to as “ESAs”) on the application of Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”) and Article 5 and 6 of Regulation (EU) 2020/852 (Taxonomy Regulation, hereinafter referred to as “TR”) regarding the interim period until the application date of the Regulatory Technical Standards on the content, methodologies and presentation of sustainability-related disclosures (“RTS”). The Updated Supervisory Statement has been published on 25 March 2022.
Le Parlement européen a adopté une nouvelle législation pour renforcer l'encadrement des crypto-actifs le 31 mars dernier. L’objectif principal est de lutter contre le blanchiment d’argent, le financement du terrorisme et d’autres crimes
At the joint meeting of the ECON and LIBE Committees of the European Parliament, Members of the European Parliament had a second public hearing on the new anti-money laundering legislative proposals with leading experts - the President of the Financial Action Task Force, the Heads of the French and Latvian FIUs and representatives of Refinitiv, the Council of Bars and Law Societies of Europe and Transparency International.
Effective information sharing between public and private institutions was presented as the absolute key to the success of AML policies, as well as the transparency of beneficial ownership registries. Experts stressed that the EU needs better asset recovery and EU-wide cooperation on asset identification and seizure. The management of emerging risks, in particular digital assets, is a major concern.
Market Reactions: markets remain highly volatile, with equity markets down but with some recent signs of stabilisation. Oil remains under pressure after the embargo on Russian oil instituted by the US and the UK. Demand for safe-haven assets, such as gold, is still high. Whilst a process of restauration of value is underway (initial repricing initiated prior to the crisis, crisis consequences on European assets then), it is incomplete and fragmented. In particular, it remains to be seen the real life impact of the first stages of “normalisation” confirmed by Fed and ECB. This argues in favour of a bit of patience as the likely additional volatility will offer entry points.
Outlook: we have downgraded our global growth forecasts as the global economy will be impacted by higher energy and food prices, both on the demand and production side. Europe is the area where stagflationary risks are highest and a temporary recession will be possible in 2022. China, however, should continue to contribute to stabilising global growth.
Earnings expectations and equity outlook: a lower growth environment and prices trending higher will pressure margins and could potentially lead to an earnings recession. While we think the US can avoid this, Europe is more at risk. In our view, current market corrections incorporate most of the bad news, but some further retracements are possible, although limited, unless further escalations in the crisis put the global economy at risk (not our base scenario). Bearing this in mind, we maintain a cautious stance on equities, but are prepared to add risk as an improvement in the crisis could trigger a relief-rally, in particular in European markets.
Main convictions: we keep a mildly-cautious risk allocation, with a focus on inflation resilience in stock and credit selection. Duration is played actively within a short duration stance, as we recognise that higher inflation will drive yields higher in the mid-term but shortterm dynamics could provide tactical opportunities. In credit, we stay watchful of liquidity risk.