ABBL

Depositary Bank Forum Response to Consultation paper on ESMA’s draft technical advice to the EU Commission on possible implementing measures of the AIFM Directive

The Depository Bank Forum welcomes the opportunity to comment on the ESMA’s draft technical advice to the EU Commission on possible implementing measures of the AIFM Directive and appreciate the openness and willingness to engage with the industry that has been displayed by ESMA, evidence of which includes both the industry workshops and the
extensive consultation process.

ABBL position paper on the EU initiative to introduce new additional taxes for the financial sector

So far, the different ideas discussed at G 20 and/or EU level do not seem to allow determining with clarity the aim of introducing a financial sector tax (FST). The present paper mainly discusses issues raised in the recent consultation of the EU Commission, which envisages the (alternative?) introduction of two types of taxes, as well as a bank levy:

• a financial transaction tax or FTT (with two different potential scopes), and
• a financial activity tax or FAT (in three different forms), as well as
• a bank levy aiming at financing resolution funds.

ABBL Response to the Commission Consultation on Central Securities Depositories

The ABBL welcomes the European Commission’s consultation on the need and scope of a regulation on Central Securities Depositories (CSDs) activities and functions. Today CSDs are built on national regulation that has over the course of the years adapted to provide at national level the required security and flexibility to best suit market needs. In the European tradition of CSDs or ICSDs, Luxembourg may be a particular case as it has been home to one of the largest EU ICSDs for the past 40 years. Until 2009, Luxembourg had in effect no “national” CSD as typically understood in other Member States.

ABBL Response to Consultation "Legislation on legal certainty of securities holding and dispositions"

The ABBL welcomes this second consultation in the field of securities law and encourages the EU Commission to pursue its efforts to foster a functional harmonisation relying on international standards (Geneva Convention inter alia) to help overcome the increased complexity that stakeholders have been facing in recent years.

ABBL Response to the EU Commission's Public Consultation on Short Selling

Given the difficulties experienced by investors in the fall of 2008 created by the diverging application of short selling rules, the ABBL believes that short selling rules should be harmonised across Europe (including EEA) and thus welcomes the Commission’s consultation as a step in this direction.  The ABBL considers that provisions, such as bans or restrictions, may be introduced but only under exceptional situations to be defined carefully.

ABBL Response to the Commission Consultation on possible Changes (CRD IV) to the Capital Requirements Directive

The Luxembourg Bankers’ Association welcomes the opportunity to comment the Commission consultation on possible changes to the CRD, i.e. the CRD IV package. Our comments focus on the liquidity standards (Section I), on the leverage ratio (Section III) and on the single rulebook in banking (Section VII).

ABBL Response to the Basel Committee’s Consultative Document “Strengthening the Resilience of the Banking Sector”

Any measure of leverage does not say anything about the level of risk incurred by a bank, whether market, credit or liquidity risks. In our view, what is relevant is not the leverage as such, but rather the risks that are leveraged by a bank. Hence, a leveraged portfolio composed of non-risky assets may well be less risky than a non-leveraged portfolio composed of risky assets. If it were implemented as a binding “Pillar 1” limit, the leverage ratio would equally hit banks that leverage risky and/or illiquid assets (investment banks for example) and those leveraging non-risky and liquid asset. The Luxembourg banks belong to the latter category, because they are mostly involved in retail, private banking, asset management, custodian and also Covered Bonds activities.

ABBL Response to the Communication from the Commission on a EU Framework for Cross-Border Crisis Management in the Banking Sector

The ABBL considers that it is crucial to strengthen and to integrate the current framework for cross-border crisis management in order to significantly reduce the moral hazard and to ensure financial stability. We call therefore for an ambitious reform of the framework, which should not be jeopardized by, among others, political or legal hurdles.

Avis de l’ABBL sur le projet de loi portant approbation des conventions fiscales et prévoyant la procédure y relative en matière d’échange de renseignements sur demande (n° 6072)

Il est à prévoir que la ratification des avenants conduira à une augmentation du nombre de demandes de renseignements provenant de l’étranger. Cette situation soulèvera certainement beaucoup de questions, tant du coté des administrations concernées que du côté des banques. En prenant des décisions, les membres de l’ABBL, en tant que personnes tierces, doivent tenir compte à la fois des intérêts de l’Etat comme de ceux de leurs clients directement concernés. Même en prenant en considération la pression du temps, mais justement « afin d'assurer que l'échange de renseignements auquel l'Etat luxembourgeois s'est engagé puisse être exécuté de façon efficace et dans un cadre légal clair », l’ABBL aurait préféré que le projet de loi soit plus précis sur un certain nombre de points de nature procédurale notamment.