EU pension rules would cost 180,000 jobs, says CBI

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EU pension rules would cost 180,000 jobs, says CBI

EU pension rules would cost 180,000 jobs, says CBI
The CBI has warned that new European pension rules would lead to 180,000 UK jobs being lost and would hit businesses with £350bn of added costs, as it called for the “crazy” and “wrong-headed” proposals to be ditched. The European Commission looks set to impose a new funding regime for pensions, which would force employers to divert hundreds of billions of pounds into their final salary pension schemes to reduce their deficits. The so-called Solvency II regulations are designed to make pension plans in EU member states more financially robust.
The Daily Telegraph Business, p. 1
Also appeared in : Daily Mail, p.19, The Daily Telegraph, p.6

Man chief Clarke to depart in shake-up
The world’s biggest listed hedge fund, Man Group, has announced a major shake-up that will lead to the departure of chief executive Peter Clarke. Mr Clarke, who has been chief executive since 2007, will retire in February next year and hand over control to Manny Roman, Man’s chief operating officer and founder of GLG.
The Daily Telegraph Business, p. 5
Also appeared in : The Independent, p.50

Newton expects bid battle for wealth management arm
It was revealed yesterday that Newton Investment Management, headed by Helena Morrissey, has put its wealth management division on the auction block. Suitors for the company, which manages assets of up to £3.5bn, include FTSE 100 member Standard Life, private bank Rathbones and Quilter, the money manager owned by private equity firm Bridgepoint. The process, which Newton’s US parent BNY Mellon would not comment on, is being run by boutique bank Evercore.
The Daily Telegraph Business, p. 3

Santander retrains 800 advisers on new rules
Santander has temporarily withdrawn 800 staff from investment advice roles in order to take measures to ensure they are fully able to comply with new rules from the Financial Services Authority that change the way such advisers are paid.
The Guardian, p. 28

Mortgage lender fined
Cheshire Mortgage Corporation was handed a £1. 2 million fine by the FSA after a string of failures that hit 2,000 customers over five years.
The Times, p. 31
Also appeared in : The Daily Telegraph Business, p.3, The Independent, p.54-55

HSBC to pay £1.2bn over Mexico scandal
HSBC is expected to admit today it has settled allegations of running money for Mexican drug barons for a larger than expected $1.9bn (£1.2bn), barely 24 hours after close rival Standard Chartered admitted paying $670m (£415m) in penalties to US regulators to settle allegations it broke sanctions on Iran.
The Guardian, p. 23
Also appeared in : The Daily Telegraph Business, p.1, The Times, p.35, Daily Mail, p.19, Financial Times Companies and Markets, p.19

Standard Chartered fine
Yesterday it was revealed that Standard Chartered has paid $327m (£204m) in a final settlement with US authorities over allegations it broke sanctions over dealings with Iran, Burma, Libya and Sudan. The bank confirmed it had reached a deal over the investigation into sanctions busting with the Office of Foreign Assets Control, the Federal Reserve Bank of New York, the Department of Justice and the New York County District.
The Daily Telegraph Business, p. 5
Also appeared in : Financial Times Companies and Markets, p.24, The Guardian, p.23, Daily Express, p.45

Metro Bank co-founder fights for seat at top of table
Vernon Hill, the billionaire co-founder of Metro Bank, whose motto is “No stupid rules”, is struggling to win approval from the Financial Services Authority to be allowed to chair the upstart bank.
The Times, p. 34

Banking & finance
David Cameron will face accusations that he has watered down safeguards for the City of London after it emerged that Britain has changed a key demand over banking union.
The Times, p. 34

US regulators slam Standard Chartered
America’s most powerful regulators lined up yesterday to launch a blistering attack on Standard Chartered – one of Britain’s biggest and most successful banks.
Daily Mail, p. 58

Tucker and US unite to get tough on big failing banks
Paul Tucker, Deputy Governor of the Bank of England, and Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation, have outlined the tough measures they will take if one of the top dozen banks in the UK and US were on the brink of failure. Top management would be fired, shareholders would be wiped out and bondholders could expect to lose massively in any future meltdown of a major bank, according to the plan revealed today. Today’s announcement makes it clear that the UK believes it must work closely with America because so many of the dozen banks covered by them are big in both countries.
Evening Standard London, p. 41
Also appeared in : The Independent, p.51

Punish bankers who let drug barons launder cash, urge MPs
A report by the Commons home affairs committee has proposed that bankers who allow drug barons to launder illegal profits through their institutions should be punished with a new criminal law. The report also warns that enforcement by the Financial Services Authority has been “too weak”.
Evening Standard London, p. 18

UK ready to ‘trust’ US in event of cross-¬border banking failure
The deputy governor of the Bank of England has said UK authorities are prepared to “trust” their US counterparts the next time a big American financial company with large London operations runs into financial trouble.
This abstract from the Financial Times was produced by Kantar Media
Financial Times, p. 1

Peer–to–peer lenders welcome regulation
It has emerged that online lending platforms which directly link savers to borrowers are celebrating a “watershed moment” after the Government said they are to be fully regulated. So called “peer-to-peer” lending, a fledgling industry that UK firms have pioneered, will have its lending and borrowing activities overseen by the UK’s new market regulator, the Financial Conduct Authority, from April 2014. The industry’s trade body, the Peer-to-Peer Finance Association, said regulation will help to bring credibility and stability to the fast-growing industry, which has lent more than £300m to consumers and businesses.
The Daily Telegraph Business, p. 8

Asset based lenders face legal action over fees
Experts have warned that banks and other small business lenders are facing “a legal time bomb” over alleged abuses of the administration process. Lawyers are beginning to examine controversial fees that asset based lenders charge when their clients go into administration, which could leave finance providers vulnerable to multi-million pound compensation claims.
The Daily Telegraph Business, p. 8

New finance reforms are ‘being rushed’
According to Andrew Tyrie, chairman of the Treasury Select Committee, reform of the financial services industry by the Government is being “rushed” and could end up creating a “lawyer’s charter”. Mr Tyrie warned that amendments to the Financial Services Bill were being taken through Parliament too quickly and complained that his committee, as well as the Commission on Banking Standards, of which he is also chairman, would not have time to properly examine the changes.
The Daily Telegraph Business, p. 5

EU fears spill over from Monti resignation
Herman van Rompuy, the president of the European Council, yesterday joined other senior politicians from across the continent in voicing his support for the Italian Prime Minister, Mario Monti, who appears set to resign. Klaus Regling, chief executive of the European Financial Stability Facility, yesterday said that the prospect of a change of government could affect European markets, whilst one ECBl executive board member, Jörg Asmussen, said Monti had “achieved great things in a short amount of time”.
The Guardian, p. 23

The above articles appeared on 11/12/12 reproduced with the kind permission of Kantar Media UK. All rights reserved.

Charterbridge Private Financial Planning, Independent Financial Advice, Thornbury, Bristol.