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Government moves to support UK Islamic finance industry
January 21, 2010--The Treasury has introduced measures in Parliament to support Islamic finance and the issuance of corporate sukuk within the UK.
The Financial Services and Markets Act 2000 Order 2010, will help to provide a level playing field for corporate sukuk within the UK. The Order provides clarity on the regulatory treatment of corporate sukuk, reducing the legal costs for these types of investments and removing unnecessary obstacles to their issuance.
Sukuk are a broad class of financial instruments designed to replicate the economic function of bonds, but with a structure which complies with Islamic principles. Although there is an obvious appeal to the Muslim community, sukuk can be issued and bought by everyone.
Exchequer Secretary to the Treasury Sarah McCarthy-Fry MP said:
“The Government’s objectives on Islamic finance are to enhance the UK’s competitiveness in financial services by maintaining the UK’s position as a Western leader for international Islamic finance; and to ensure that everybody, irrespective of their religious beliefs, has access to competitively priced financial products.”
“This measure is another important step in the development of the Islamic finance sector in the UK and will help to provide a level playing field for Islamic financial products in this country. It is good news for the UK economy and for our Islamic finance industry.”
view the Impact Assessment of the Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2010
Source: HM Treasury
January 2010: Flash Consumer Confidence Indicator
January 21, 2010--In January 2010, the DG ECFIN flash estimate of the consumer confidence indicator signals an improvement for the EU aggregate (up to -13.3 from -14.3 in December) and a broadly unchanged level for the euro-area aggregate (-15.8 compared with -16.1 in December).
The Economic Sentiment Indicator continues to recover
The Economic Sentiment Indicator (ESI) rose once again in December to 92.0 (+4.1 points) in the EU and to 91.3 (+2.5) in the euro area. It has improved in both areas for nine consecutive months since its trough in March 2009, though it still remains below its long-term average.
view tables
Source: European Commission Economic and Financial Affairs
FSA outlines concerns about firms' handling of clients' money and assets
January 21, 2010--The Financial Services Authority (FSA) has sent a letter and report to the chief executive officers (CEOs) of major insurance brokers and investment firms which are able to hold money or assets on behalf of clients. The letter draws attention to the FSA’s concerns over the handling of clients’ money and assets
It follows a letter sent to firms in March 2009, which explained the obligations a firm has to protect clients’ money and assets and set out the FSA’s intention to conduct further firm visits during 2009.
Subsequently the FSA visited a range of firms and found a number of failings. As a result, the FSA took the decision to write to chief executives with an accompanying report containing details of visit findings, and highlighting some of the weaknesses discovered.
These included:
poor management oversight and control;
lack of establishment of trust status for segregated accounts;
unclear arrangements for the segregation and diversification of clients’ money; and
incomplete or inaccurate records, accounts and reconciliations.
The FSA has already taken measures against a number of the firms that it visited, including referring two firms to enforcement, freezing a firm’s assets and commissioning skilled persons reports.
Sally Dewar, managing director of risk, said:
"The client asset rules are a key protection for consumers. It is simply unacceptable that firms are not ensuring that consumers get the appropriate protection. We have pointed out our concerns to firms and will be following up these concerns with further visits this year."
The report also includes examples of how firms should meet FSA expectations in relation to compliance with its requirements. Over the course of the year, the FSA will be increasing its visits to firms to assess how well these are being met.
view Client Money & Asset report
Source: FSA.org
World Bank Turkey Country Director Ulrich Zachau has spoken highly of the Turkish economy’s outlook for 2010, noting that it is undergoing a process of recovery.
January 20, 2010--World Bank Turkey Country Director Ulrich Zachau has spoken highly of the Turkish economy’s outlook for 2010, noting that it is undergoing a process of recovery.
The recovery started last year, Zachau said and went on: “Even though the official numbers haven’t been disclosed yet, the growth rate in the fourth quarter of 2009 seems to be on the positive side compared to the same period a year ago. The fundamentals of the Turkish economy are still sturdy.”
Speaking to the Anatolia news agency on Wednesday, the World Bank official shared his remarks regarding the Turkish economy’s performance in 2009 and its possible course this year. Zachau reiterated the World Bank’s official expectation of around a 3 to 4 percent growth rate in 2010 for Turkey, especially fueled by a reinvigoration in domestic consumption.
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Source: Todays Zaman
Index Linked Notes, New Investment Product On The Spanish Stock Exchange
Three issues by Barclays Bank to start trading
January 20, 2010--
The Spanish Stock Exchange today begins trading the first 3 issues of INDEX LINKED NOTES by Barclays Bank, namely: Bono Europa 3, Bono Europa 5 and Bono Memoria. The first two are linked to the Euro Stoxx 50 underlying asset and the third is linked to a basket made up of the S&P 500 and the Euro Stoxx 50 indices.
The INDEX LINKED NOTES, a new investment product launched on the Spanish Stock Exchange, are a type of structured bonds that can deliver a return if certain conditions set depending on the trends followed by the underlying indices are met.
The INDEX LINKED NOTES are traded on the SMART-Warrants platform in accordance with the regulations of the Warrants, Certificates and Other Products trading segment.
RENTA 4 Sociedad de Valores will act as the specialist intermediary.
Source: Bolsa de Madrid
Another ETF Securities Gold ETC Launched on Xetra
January 20, 2010--A further ETC (exchange traded commodity) issued by ETFS Metal Securities Limited has been tradable on Xetra® since Wednesday.
ETC name: ETFS Physical Swiss Gold Securities
Asset class: Commodities
ISIN: DE000A1DCTL3
Management fee: 0.39 percent
Benchmark: Gold PM Fixing
The new ETC from ETFS Metal Securities Limited gives investors a further opportunity to participate in the performance of gold. The ETFS Physical Swiss Gold Securities ETC is an exchange-traded bond backed by gold physically deposited in Switzerland. The holders of this security are entitled to payment of its value in cash or in gold.
Deutsche Börse’s ETC segment product range currently comprises 142 products. The monthly trading volume of ETCs on Xetra averages around 400 million euros.
Source: Deutsche Börse
ETF Landscape: European DJ STOXX 600 Sector ETF Net Flows week ending 15-Jan-10
January 20, 2010-Highlights
Last week saw US$117.2 Mn net outflows from DJ STOXX 600 sector ETFs. The largest sector ETF inflows last week were in Technology with US$30.2 Mn and Industrial Goods & Services with US$21.9 Mn while Automobiles & Parts experienced net outflows of US$59.9 Mn.
Year-to-date, Basic Resources has been the most popular sector with US$83.7 Mn net new assets, followed by Technology with US$26.7 Mn net inflows. Food & Beverage ETFs have been the least popular with US$98.7 Mn net outflows YTD
Visit Blackrock for more information. Productivity slumps in eurozone, rises in US: institute
"These are unusually large differences in productivity growth between the United States and Europe," said Conference Board chief economist Bart van Ark. read more
EU Emission Trading: benchmarks must not lead to carbon leakage view the position paper-COMMUNITY-WIDE BENCHMARKS AND IMPLEMENTING RULES FOR
ALLOCATION OF ALLOWANCES UNDER THE REVISED EU EMISSION
TRADING SCHEME (ETS)-
DELIVERING THE 21% REDUCTION TARGET EU to examine US-style bank tax
Finance Minister Anders Borg had earlier presented in a letter to peers his plans to impose a bloc-wide levy which he said would "pay for the impact (financial sector) rescue measures have had on our public finances." read more If you are looking for a particuliar article and can not find it, please feel free to contact us
Source: ETF Research and Implementation Strategy Team, Blackrock
January 20, 2010--Productivity in the 16 euro nations fell last year due to the recession but continued to rise in the United States, narrowing the transatlantic gap, the Conference Board economic institute said Wednesday.
In the single currency bloc in 2009, productivity -- in terms of output per hour -- fell 1.0 percent, yet remained strong in the United States, growing 2.5 percent.
Source: EU Business
January 20, 2010--BUSINESSEUROPE has just adopted a position paper on benchmarks and other methods for free allocation of allowances under the EU Emission Trading Scheme (ETS) from 2013 onwards. This position was approved together with the European sectoral federations whose industries are covered under the EU ETS.
European business has always been in favour of setting benchmarks to ensure that industrial installations under the ETS which are cleaner than others also receive relatively more free allowances because this creates incentives for further low-carbon investments. It is important, however, that these benchmarks are realistically achievable for EU industry by 2020 so that the resulting free allowances are sufficient to prevent carbon leakage.
Source: BUSINESSEUROPE
January 19, 2010- Europe will examine a Swedish proposal to introduce a Europe-wide tax on banks similar to a new US scheme, in a bid to fix broken public finances and build a buffer against future financial crises.
Spanish Finance Minister Elena Salgado, chairing a Brussels meeting of counterparts from the 27 European Union members, told reporters that the idea was "already on the agenda for an informal meeting" in Madrid in April.
Source: EU Business
