The Association of Financial Markets in Europe (AFME) today issued the following statement in response to the publication of the final report of Sir Richard’s Lambert’s Banking Standards Review. Sir Richard Lambert and his team have taken on board many of the issues raised at the consultation stage; particularly in clarifying the relationship between the regulatory regime and monitoring professional standards, and in clearly defining the remit of the new body, both geographically and organisationally. We particularly welcome his statement that the free movement of talent in and out of the City of London should not be constrained. We will discuss the report with our members, and look forward to working with Sir Richard and his team in the next phase of their work. ‐ENDS‐

LONDON, 14 May 2014 -- The Global Financial Markets Association (GFMA), which represents the common interests of the world’s leading financial and capital market participants, today announced a leadership transition as the terms of the current Chair and CEO expire. The appointments were approved yesterday at GFMA’s Board of Directors meeting in London. Effective immediately, Samir Assaf, Chief Executive of Global Banking and Markets, HSBC, takes over as Chair of GFMA from Blythe Masters, Head of Global Commodities at JPMorgan Chase. Additionally, Kenneth E. Bentsen, Jr., President and CEO of the U.S-based Securities Industry and Financial Markets Association (SIFMA), takes over as CEO of GFMA from Simon Lewis, who is Chief Executive at the Association for Financial Markets in Europe (AFME). Both Simon and Blythe have been in their posts for two years. Mr. Bentsen will continue to lead SIFMA. Samir Assaf will serve as Chair for a term of two years, and Ken Bentsen will serve as CEO for a term of three years. GFMA brings together three of the world’s largest financial trade associations to address the increasingly important global regulatory agenda and to promote coordinated advocacy efforts: the Association for Financial Markets in Europe (AFME), the Asia Securities Industry & Financial Markets Association (ASIFMA) and, in the United States, the Securities Industry and Financial Markets Association (SIFMA). In the coming months, GFMA will focus on important issues related to Basel capital and liquidity standards, cross-border regulation, the global legal entity identifier (LEI) initiative and cross-border resolution, among others. More information on GFMA’s priorities can be found here: http://gfma.org/initiatives/. Samir Assaf, GFMA’s new Chair, commented: “Many of the new regulations being implemented across the world are necessary for the stability of the financial system, but they also represent a great challenge to the financial industry. GFMA provides a global and unified voice for the industry, seeking to promote consistency of regulation across borders and to support the flow of capital to industries, economies and societies where it is needed. GFMA can help craft effective regulatory reform that maintains market efficiency and integrity while helping the financial industry drive economic growth and opportunity. I’d like to thank Blythe and Simon for their leadership over the past two years and their substantial impact on the global agenda." Kenneth E. Bentsen, Jr., GFMA’s new CEO, commented: “Blythe and Simon have made tremendous progress in establishing the GFMA as a substantive voice before global and regional regulators. Financial regulation on the global stage continues to be a top priority for the industry, and I look forward to working with Samir in his new role as Chair. GFMA and its member organizations remain committed to working with regulators and policymakers to ensure they have constructive industry insight needed to adopt responsible regulation that is consistent and coordinated across jurisdictions.” Samir Assaf is Chief Executive of Global Banking and Markets, a Group Managing Director and member of the Group Management Board at HSBC, roles he assumed on 1 January 2011. He was appointed Head of Global Markets in January 2008 and a Group General Manager in May 2008. Mr Assaf joined HSBC in 2000 when the bank acquired CCF, where he was Head of Markets. Previously he was at Groupe Total, where he was Head of Treasury. Kenneth E. Bentsen, Jr., is President and CEO of SIFMA. Previously, Mr. Bentsen served as President, and earlier as the Executive Vice President of Public Policy and Advocacy for SIFMA, responsible for SIFMA's legal, regulatory, and legislative affairs and advocacy initiatives. Prior to joining SIFMA, Mr. Bentsen was president of the Equipment Leasing and Finance Association (ELFA). From 1995 to 2003, Mr. Bentsen served as a Member of the United States House of Representatives from Texas. Mr. Bentsen previously worked as an investment banker in New York and Texas. More information on GFMA is at www.gfma.org ‐ENDS‐

Simon Lewis, Chief Executive, AFME, has issued the following statement concerning the Financial Transaction Tax (FTT), on conclusion of the ECOFIN meeting today: “The intention of the participating Member States to introduce an FTT by 2016 is disappointing. Although the evidence continues to show that such a tax will have serious harmful economic effects for end-users of financial markets throughout Europe, the participating Member States are working towards imposing a tax on transactions in equities and certain types of derivatives. “This would have a negative impact on growth and jobs, while creating uncertainty for investors by leaving the door open for further taxation through the step-by-step approach that is now envisaged.” -ENDS-

Simon Lewis, Chief Executive, AFME, has issued the following comment on today’s European Court of Justice (ECJ) ruling on the Financial Transaction Tax (FTT): “Given the seriously damaging implications of the proposed Financial Transaction Tax, we are disappointed by the European Court of Justice’s decision. However, the judgment is focused on procedural matters, and this has always been a possible outcome. “We urge the 11 countries involved to take the opportunity to revisit the need for a tax that will act as a brake on economic recovery in Europe by increasing costs to investors and companies. All the evidence continues to show that the proposed transaction tax will have serious harmful economic effects for end‐users of financial markets throughout Europe – not only within the 11 member states that are considering it. Against this background, the UK was right to mount a legal challenge.” ‐ENDS‐

The Association for Financial Markets in Europe (AFME) welcomes the joint paper on reviving securitisation by the European Central Bank (ECB) and the Bank of England (BoE), published today. The paper says that concerted action, involving a range of policymakers and regulators, is needed to increase issuance of asset‐backed securities (ABS). AFME has long argued that securitisation has the potential to unlock the funding needed for Europe’s economic recovery. This joint paper outlines the practical steps needed to revive Europe’s securitisation market. “Although policymakers at a senior level have been saying encouraging words about the economic benefits that Europe’s securitisation sector can bring, it is clear that time is running out for the positive regulatory signals needed on Liquidity Coverage Ratio and Solvency II. Europe risks sending mixed signals to the market,” commented Simon Lewis, AFME’s Chief Executive. Actions needed AFME believes that the following measures are needed to boost securitisation in Europe: Recalibration of risk‐weightings for European high‐quality ABS Lower capital charges for insurers holding asset‐backed securities (ABS) under the Solvency II proposals, which are calibrated to levels sufficient to attract actual investment by insurers compared to other instruments of comparable quality Greater co‐ordination between regulators within Europe and internationally A level playing field for securitisation – e.g. disclosure requirements – compared to other forms of fixed income instruments Inclusion of a wider range of high‐quality securitisations as high‐quality liquid assets (HQLA) in the Liquidity Capital Ratio (LCR) – not just RMBS, but also securitisations backed by “real economy” assets, including credit cards, consumer loans, SME, auto loans and certain other high-quality assets. ‐ENDS‐

The Association for Financial Markets in Europe (AFME) welcomes the European Commission’s paper on Long-Term Financing of the European Economy, published today, and in particular, its acknowledgement of the important role to be played by Europe’s capital markets in funding Europe’s economic growth. The Commission’s paper notes that although bank lending has been negatively affected by regulatory constraints, the intermediary role of banks is likely to grow in importance as Europe becomes less reliant on direct bank loans as a source of financing. The Commission’s communication follows on from last year’s Green paper on long-term financing of the European economy and addresses ways to improve access to finance for Europe’s companies. Improving SME access to finance The Commission paper refers to initiatives to address SMEs’ education and information gaps through the Enterprise Europe Network. AFME’s latest funding study[1] highlights that SMEs are not fully aware of the range of government and central bank schemes at national and European levels. Improved information and communication would increase their awareness of what was available and how to access it. In addition, securitisation could play a larger role if the economics of SME loan securitisation can be restored as it is an efficient way for banks to be able to free up capital and raise cash for further lending to existing or new SME borrowers. Securitisation AFME welcomes and supports the Commission’s commitment to revive securitisation in Europe, and in particular, to consider better regulatory treatment for high quality securitisation. Since 2011, Europe has been a global leader in important regulatory reforms of transparency and risk retention, which, along with industry initiatives such as Prime Collateralised Securities, have laid the foundations for sustainable securitisation markets which meet the needs of the real economy. AFME remains strongly committed to constructive engagement with the Commission and other policymakers to this end. It is essential that this further analysis takes account of the evidence of the strong performance of high quality securitisation in Europe. Private Placement AFME supports the Commission’s identification of private placement markets as an alternative to bank lending and bond issuance. According to AFME’s funding study, large and mid-sized companies want greater flexibility in accessing finance as they need to be able to tap large pools of cash quickly, depending on market conditions. They say that certain capital markets sources of finance, such as the European private placement and high yield bond markets should be prudently expanded, which could be achieved by developing legislation as well as more harmonised EU insolvency regulations. Infrastructure funding According to AFME’s recent study, investors, such as pension funds and insurers, are cautious of highly localised practices in procurement, as well as uncertainty around future tariffs. Governments and policymakers could reassure investors by standardising national or pan-European tariff guidelines, as well as by introducing simpler planning and procurement procedures. AFME welcomes the Commission’s commitment to enabling greater standardisation and transparency in areas such as infrastructure project credit history and improving availability of transparent information and data on new Public Private Partnership initiatives. Clare Francis, Managing Director & Head of Global Corporate Banking at Lloyds Bank, and Chair of AFME’s Long Term Growth working group commented: “As growth and financing of Europe’s real economy face structural challenges, enhancements to European capital markets would be a welcome development, with banks continuing to play a key funding role. For example, an ideal world would allow corporates to able to choose between fully functioning euro, sterling and U.S. private placement markets, all with similar conventions, documentation and standards. Although we are some way off from that, this EC paper is an important move towards that goal.” Rick Watson, AFME’s head of Capital Markets commented: “There is no question that European capital markets have a key role to play in fuelling long-term growth. In order to achieve this ambition, they need to be developed so that companies can more easily access them and that means a well developed capital markets policy; one which improves education for new issuers on how to most efficiently meet the needs of capital markets investors. “The Commission’s paper represents a major step forward towards this goal by identifying areas where we can further develop Europe’s capital markets.” -ENDS-

AFME welcomes the significant progress represented by Council and Parliament reaching agreement on the Single Resolution Mechanism. “While important details remain to be finalised, this agreement achieves the essential outstanding element in creating the framework for a strong and integrated Banking Union in Europe,” said Simon Lewis, AFME Chief Executive. “It ensures that ultimate responsibility for both supervision and resolution are firmly anchored at European level. The SRM will play a vital role in reducing single market fragmentation and supporting crossborder resolution. “We look forward to seeing further details of the agreement. Only a truly integrated and effective SRM system based on the key principles of the Bank Recovery and Resolution Directive will ensure that the link between sovereigns and banks is effectively broken.” ‐ENDS‐

Washington, D.C. and London, February 19, 2014 – SIFMA President and CEO Kenneth E. Bentsen, Jr. and AFME CEO Simon Lewis, whose respective memberships are comprised of firms that engage for their clients in all aspects of the transatlantic financial marketplace, today issued the following statement on this week’s TTIP negotiations: “The TTIP meeting between EU Commissioner Karel de Gucht and USTR Michael Froman in Washington, DC this week offered the opportunity for U.S. and E.U. policymakers to enhance the financial services framework for regulatory cooperation. SIFMA and AFME are of the view that expanding opportunities for financial services providers and their clients in the transatlantic market can only be realized if TTIP includes commitments for regulatory coordination and cooperation, which are fundamental to our intertwined economies and financial markets. This week’s meeting was a critical opportunity to enhance coordination, reduce conflict and confusion, and improve the efficiency of regulations across jurisdictions. Importantly, a financial services regulatory framework between the U.S. and E.U. would facilitate and guide efforts to promote consistent high-quality regulatory standards in global markets.” The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org. The Association for Financial Markets in Europe advocates stable, competitive and sustainable European financial markets, which support economic growth and benefit society. AFME (Association for Financial Markets in Europe) promotes fair, orderly, and efficient European wholesale capital markets and provides leadership in advancing the interests of all market participants. AFME represents a broad array of European and global participants in the wholesale financial markets. Its members comprise pan-EU and global banks as well as key regional banks, brokers, law firms, investors and other financial market participants. AFME participates in a global alliance with the Securities Industry and Financial Markets Association (SIFMA) in the US, and the Asia Securities Industry and Financial Markets Association through the GFMA (Global Financial Markets Association). For more information please visit the AFME website, www.afme.eu.

The undersigned financial services trade associations released the following statement in reaction to the Transatlantic Trade and Investment Partnership (TTIP) meeting taking place on 17 and 18 February 2014 between European Commissioner for Trade Karel De Gucht and US Trade Representative Ambassador Michael Froman: “By nearly every measure, the US and EU economies and capital markets are inextricably linked. Our members and their customers benefit greatly from financial markets that are the most efficient, deep and liquid in the world. However, the regulatory frameworks for those markets have not kept up with this reality, so that there can be obstacles to providing the full range of services that clients are seeking. “TTIP would for the first time provide a process and framework – in which regulators were fully engaged – that would address existing and future regulatory issues at an early stage and make available the mechanisms to resolve, or at least mitigate, regulatory differences between countries. “Importantly, financial stability would also be strengthened through a more coherent regulatory system, while investors, firms, regulators, and supervisors would benefit from regulation that is coordinated. While not all issues will be resolved through that process, TTIP offers a venue to discuss duplicative, incompatible, or conflicting regulatory requirements emanating from different parts of the world.” Last month, the European Commission released a paper outlining a framework to ensure better coordination of transatlantic rules. The members of EFSA believe this is a useful starting point for TTIP negotiations. ‐ENDS‐

Statement from Simon Lewis, AFME CEO: Sir Richard’s report comes at a timely moment when much of the post-crisis regulatory structure is in place and the industry now needs to focus on sustainable cultural and behavioural change. There is real evidence that this is already happening but the proposals set out by Sir Richard will add an important element of measurement and public accountability which has been missing. Our members look forward to working with him and his team on the next stage of the project -ENDS-