5 January 2012
The European Market Infrastructure Regulation on OTC derivatives, central counterparties and trade repositories
One of the effects of the early stages of the financial crisis was to highlight the opaque nature of the over-the-counter (OTC) derivatives market; a market where there are few reporting requirements and little centralised clearing of contracts.
The G20 agreed in September 2009 that all standardised OTC derivative contracts should be traded on exchanges or on electronic trading platforms and cleared through central counterparties, that OTC derivative contracts should be reported to trade repositories and that non-centrally cleared contracts should be subject to higher capital requirements.
In response, the European Commission published its final proposal for a European Market Infrastructure Regulation (EMIR) on 15 September 2010. EMIR introduces:
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Posted in Europe, Financial services and market conduct, Regulators |
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5 January 2012
Company directors, having fiduciary duties, must meet a high standard…
“A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. Fiduciary duty implies a stricter standard of behaviour than the comparable duty of care at common law. The fiduciary has a duty not to be in a situation where personal interests and fiduciary duty conflict, a duty not to be in a situation where his fiduciary duty conflicts with another fiduciary duty, and a duty not to profit from his fiduciary position without express knowledge and consent. A fiduciary cannot have a conflict of interest.”*
For how strictly this standard is applied, see the recent case of Towers v Premier Waste Management Limited.
*From the evidence of the Financial Services Consumer Panel to the Joint Committee on the draft Financial Services Bill, contained in the Joint Committee’s report at paragraph 117.
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Posted in Directors |
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