Dear All,


ICMA/AMIC activities

The next AMIC conference will take place on 27 November in London and will be hosted by BlackRock. The conference will feature panel discussions led by industry practitioners on the development of the STS Securitisation market, the pension gap, PEPP and the effect of negative interest rates and a discussion on the possibility of an EU Ecolabel for funds. All market participants are welcome to attend for free however registration in advance is essential

The next AMIC Executive Committee meeting will take place on 28 November at ICMA's office in London. There will be a discussion with the FCA regarding their priorities in relation to wholesale asset management activities. Other topics which will feature on the agenda are: CSDR mandatory buy-ins, ICMA study on the corporate bond market, PRIIPS consultation and updates on the various AMIC working groups. 

Upcoming ICMA Courses

    6-8 November: Financial Markets Foundation Qualification (FMFQ)
21-22 November: Fixed Income Portfolio Management 
     25 November: Portfolio Construction
      30-31 March: Collateral Management

ICMA initiatives 

    20 November: ICMA Women's Network - Gender Lens Investing: A fresh perspective
    21 November: ICMA Future Leaders: How do banks and their employees stay relevant in this rapidly changing industry?



Financial stability
  • (25.10.2019) EIOPA publishes Risk Dashboard for October 2019

The European Insurance and Occupational Pensions Authority (EIOPA) has published its updated Risk Dashboard based on the second quarter 2019 Solvency II data.

The results show that the risk exposures of the European insurance sector remained overall stable compared to July. Macro and market risks continue at a high level. Volatility of the largest asset class – bonds – increased. Credit risks continue at a medium level, with somewhat lower Credit Default Swaps (CDS) spreads for most bond segments and broadly stable credit quality of asset portfolios. Nonetheless, signs of potential risk mispricing prevail. Market perceptions were marked by an underperformance of insurers' stocks compared to overall equity markets, whereas no change was observed in insurers' external ratings.
  • (28.10.2019) SRB publishes 2020 Work Programme

The Single Resolution Board (SRB) has published its 2020 Work Programme which sets out its priorities and core tasks for the year ahead. 

The SRB’s 2020 work programme is an ambitious roadmap towards strengthening the resolvability of SRB entities and less significant institutions, fostering a robust resolution framework, carrying out effective crisis management, building up further the single resolution fund (from 33 billion in 2019 to around 41 billion next year) and establishing a lean and efficient organisation.

A focus for the year ahead will be on ensuring that the SRB’s internal policies, resolution plans and minimum requirements for own funds and eligible liabilities (MREL) decisions reflect the requirements of the new banking package.
  • (29.10.2019) ECB publishes paper on whether leverage is driving procyclical investor flows 

The European Central Bank (ECB) has published a paper which focuses on whether leverage is driving procyclical investor flows and which assess investor behaviour in UCITS bond funds.

The article shows that investors in leveraged funds react more strongly to negative fund performance than investors in unleveraged funds, suggesting greater outflows for leveraged funds during these periods. In light of this, it says that leverage in mutual funds thereby adds to procyclicality and can amplify fragilities in the sector.

The paper concludes that while the UCITS framework has contributed to the growth of the investment fund sector, possible regulatory shortcomings regarding the use of leverage may need to be further addressed.
  • (30.10.2019) Speech by Claudio Borio (BIS) on vulnerabilities in the international monetary and financial system

Speech by Mr Claudio Borio, Head of the Monetary and Economic Department of the Bank for International Settlements (BIS), on vulnerabilities in the international monetary and financial system.

In his speech, he mentions the real vulnerabilities are with gross capital flows, but then mentions that corners to watch include the dollar and the asset management industry. He argues that the asset management industry is likely to play a substantially bigger role in the next episode of financial stress than in the past. 
  • (31.10.2019) ECB publishes staff working paper on Investment Funds Under Stress,

The European Central Bank (ECB) has published a staff working paper, Investment Funds Under Stress, in which the authors present a model for stress testing investment funds based on a broad worldwide sample of primary open-end equity and bond funds.

First, they employ a Bayesian technique to project the impact of macro-financial scenarios on country-level portfolio flows worldwide that are constructed from fund-level asset holdings.

Second, from these projected country level flows, they model the scenarios’ repercussions on individual funds along a three year horizon. They further decompose portfolio flows, disentangling the specific contributions of transactions, valuation and foreign exchange effects.

Overall, their results indicate that the impact of a global adverse macro-financial scenario leads to a median depletion in AUM of 24% and 5%, for euro area-domiciled equity and bond funds respectively, largely driven by valuation effects. The authors observe that the scenario and results both present similarities to the global financial crisis. They use historical information on fund liquidations to estimate a threshold for a drop in AUM that signals a high likelihood of a forthcoming liquidation. Based on this, they estimate that 5.8% and 0.5% of euro area-domiciled equity and bond funds respectively could go into liquidation. They propose that such empirical thresholds can be useful for the implementation of prudential policy tools, such as redemption gates.

IBOR transition
  • (31.10.2019) Working Group on Sterling Risk Free Reference Rates publishes October Newsletter

The Working Group on Sterling Risk Free Reference Rates has issued its monthly Newsletter for October 2019. 

Recent developments highlighted in the newsletter include:
-The Regulatory Dependencies task force letters to UK regulators and European authorities;
-The Financial Policy Committee record reiterating there is no justification for firms to increase exposures to Libor;
-Completion of the first Libor-linked loan conversion; and
-ISDA’s anonymised summary of responses to its May Pre-Cessation Consultation.

  • (31.10.2019) OECD publishes paper on Pensions Markets in Focus

The Organisation for Economic Co-operation and Development (OECD) has published a paper on Pensions Markets in Focus. The paper provides an overview of the funded and private components of pension systems in 88 jurisdictions and outlines latest developments in the markets worldwide. It exhibits an extensive range of indicators relevant to funded and private pension arrangements, harmonised and standardised across jurisdictions. It monitors the key financial aspects of these arrangements, such as the amount of accumulated assets, the way these assets are invested and their investment performance, both over the past year and over the longer term. The report also examines the proportion of the population covered by pension plans, the amount of contributions paid into these plans and the benefits that members receive at retirement.

  • (29.10.2019) Speech by Nausicaa Delfas (FCA) on the future of financial services regulation in the UK

Speech by Nausicaa Delfas, Executive Director of International, and a member of the Executive Committee at the Financial Conduct Authority (FCA), on the FCAs preparations for Brexit and beyond Brexit.

Nausicaa reiterated the FCA’s position on equivalence: "because of our common rulebooks, the UK regime will be the most equivalent in the world to the EU’s on day 1". Whilst it has not been forthcoming to date, in future she expects both jurisdictions to be able to find each other equivalent on an outcomes basis rather than line by line regulatory alignment, respecting the autonomy of one another’s rulemaking. She said that the FCA believes equivalence decisions should be based on technical assessments and not be political.
  • (29.10.2019) European Council decision taken in agreement with the United Kingdom extending the period under Article 50(3)TEU

The European Council has published the decision taken in agreement with the United Kingdom extending the period under Article 50(3)TEU.

Sustainable Finance
  • (29.10.2019) World Bank launches Sovereign ESG data Portal

The World Bank has launched the Sovereign ESG Data Portal, a free, open and easy to use online platform that provides users with sovereign-level ESG data. The portal is designed to help investors better align ESG analysis with key sustainable development policy indicators and analysis, as well as to increase data transparency and support private sector investments in emerging markets and developing countries.

The Portal is comprised of 17 themes, selected to provide a balanced picture of policy performance and country conditions given data availability; and data is available for download for all World Bank (IBRD and IDA) countries. The initial set of indicators is based on both current market and World Bank usage of these criteria, with the framework incorporates 67 indicators in total – covering all 17 Sustainable Development Goals.

  • (29.10.2019) Speech by Dave Ramsden (BoE) on Openness and integration – the new finance and new economy in a global context

Speech by Dave Ramsden, Deputy Governor for Markets & Banking at the Financial Conduct Authority (FCA), on the Bank of England's approach to fintech. 

In particular, Dave discusses three dimensions of openness: being open to new ideas, being open to new businesses entering financial services and being open to improving our own operations.

Interest rate benchmarks
  • (29.10.2019) Speech by Steven Maijoor (ESMA) on the importance of interest rate benchmarks 

Speech by Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA), on ESMA’s role under the Benchmarks Regulation and in the global reform of interest rates

Kind regards,


The AMIC Secretariat



Tel: +44 20 7213 0348



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