“In its meeting today, the Federal Council expressed its astonishment at the German government’s indication of its readiness to take up the offer to obtain data on clients of a Swiss bank. Recently there has been an increase in the theft of Swiss bank client data which is subsequently sold abroad. This is a criminal offence in Switzerland.”

“It violates public policy and the principle of good faith, and strains relations between constitutional states. The Federal Council rejects this type of data acquisition to increase the tax base.”

Germany is Switzerland’s largest trading partner. The council insists that the two countries traditionally enjoy good relations and that because of this, Switzerland wants to resolve the issue of the stolen data and it wants to give Germany a “guarantee” that it will provide assistance in the future.
It made one of its clearest statements to date about its intentions to work more closely with other governments. The

“Federal Council reiterated its stance that it was not in the interests of Switzerland to attract undeclared funds from overseas. In March 2009, the Federal Council took the decision to facilitate administrative assistance in tax matters and, in relation to foreign countries, to remove the distinction between tax fraud and tax evasion and to provide administrative and legal assistance in the case of tax offences.”

TSR reports that several other countries have expressed interest in the data, based on media stories mainly from The Netherlands and Austria.
(c) GenevaLunch

]]> http://www.metabank.ch/switzerland-says-stolen-bank-data-should-be-part-of-taxation-talks-the-swiss-federal-council-will-insist-that-any-discussion-about-bank-data-stolen-from-swiss-banks-and-offered-to-germany-must-take/feed http://www.metabank.ch/securities-and-exchange-commission-chairman-mary-schapiro-and-uk-financial-services-authority-fsa-chairman-adair-turner-and-chief-executive-hector-sants-met-in-london-as-part-of-the-sec-fsa-strateg http://www.metabank.ch/securities-and-exchange-commission-chairman-mary-schapiro-and-uk-financial-services-authority-fsa-chairman-adair-turner-and-chief-executive-hector-sants-met-in-london-as-part-of-the-sec-fsa-strateg#comments Wed, 03 Feb 2010 05:02:53 +0000 admin http://www.metabank.ch/?p=5357 The purpose of the Dialogue, established in 2006, is to engage at the senior levels of the two agencies on current matters affecting the U.S. and UK capital markets and areas of future collaboration. This was the fifth meeting of the Dialogue.
Some of the areas of mutual interest discussed during today’s meeting included:

• Corporate governance and executive compensation
• Disclosure regimes around client asset risk
• Regulation of hedge funds and investment advisers and the protection of customer assets
• Market infrastructure, particularly relating to central counterparties for OTC derivatives
• Market supervision
• Cooperation on cross-border supervision

At the meeting, Chairman Schapiro along with Turner and Sants agreed that, given the linkages between the U.S. and UK markets, enhanced supervisory cooperation is critical to market integrity. Cooperative efforts between the staffs of the two agencies are increasing in areas such as oversight of credit rating agencies, hedge fund advisers and the clearing of OTC derivatives. To facilitate this expanding cooperation, the two agencies plan to review the existing Memorandum of Understanding Concerning Consultation, Cooperation and the Exchange of Information Related to the Supervision of Financial Services Firms and Market Oversight, entered into by the SEC and the FSA in 2006. This memorandum of understanding is designed to promote the coordination of robust and sound supervision of cross-border financial institutions and markets.
Today’s Dialogue meeting also provided the opportunity for the SEC and the FSA to continue discussions in the areas of corporate governance, particularly board risk oversight, and executive compensation. Consistent with the emerging international consensus, both agencies’ current efforts seek to address, among other things, the intrinsic links between the types and degree of risk a regulated entity/registrant assumes and their corporate governance and compensation policies.
SEC Chairman Schapiro said,

“This Dialogue has proven its utility again in allowing the SEC and FSA to share expertise and experiences regarding the rapid changes occurring in our capital markets. As regulatory reform advances on both sides of the Atlantic, we can feed this combined body of knowledge into the development of high-quality regulatory systems that take into account both national and international market dynamics.”

FSA Chief Executive Hector Sants said,

“Global cooperation between regulators is central to tackling the reform agenda and the relationship between the FSA and the SEC is key for international markets. Our ongoing dialogue gives us the opportunity to widen the areas of cooperation between the FSA and the SEC, in particular progressing our collaborative work on hedge funds and credit rating agencies.”

(c) (Press Rel. 2010-17)
See also:
SEC, FSA To Boost Cooperation On Hedge Funds: U.S. and British regulators agreed to expand their cooperation on hedge fund oversight. The two sides agreed to increase their cooperative efforts on hedge fund adviser surveillance

]]> http://www.metabank.ch/securities-and-exchange-commission-chairman-mary-schapiro-and-uk-financial-services-authority-fsa-chairman-adair-turner-and-chief-executive-hector-sants-met-in-london-as-part-of-the-sec-fsa-strateg/feed http://www.metabank.ch/global-macro-advances-longshort-declines-in-january-global-macro-hedge-funds-rose-in-january-while-longshort-funds-tumbled-with-the-stock-market-according-to-credit-suisse-asset-management http://www.metabank.ch/global-macro-advances-longshort-declines-in-january-global-macro-hedge-funds-rose-in-january-while-longshort-funds-tumbled-with-the-stock-market-according-to-credit-suisse-asset-management#comments Wed, 03 Feb 2010 02:31:08 +0000 admin http://www.metabank.ch/?p=5348 The LAB Global Macro Liquid Index, which tracks only those alternative investment funds using liquid, tradeable strategies, rose 1.18% last month. The LAB Long/Short Index, by contrast, dropped 1.46%.

“Despite overall negative performance, Long/Short Equity hedge funds outperformed major global equity market indices in January,”

Jordan Drachman, head of research for alternative beta strategies, said.

“On the other hand, the Credit Suisse Global Macro Liquid Index finished the month up 1.18% in January as many macro managers removed some of the risk from their books in the new year.”

(c) FINalternatives

]]> http://www.metabank.ch/global-macro-advances-longshort-declines-in-january-global-macro-hedge-funds-rose-in-january-while-longshort-funds-tumbled-with-the-stock-market-according-to-credit-suisse-asset-management/feed http://www.metabank.ch/sec-fsa-to-boost-cooperation-on-hedge-funds-us-and-british-regulators-agreed-to-expand-their-cooperation-on-hedge-fund-oversight-the-two-sides-agreed-to-increase-their-cooperative-efforts-on-hed http://www.metabank.ch/sec-fsa-to-boost-cooperation-on-hedge-funds-us-and-british-regulators-agreed-to-expand-their-cooperation-on-hedge-fund-oversight-the-two-sides-agreed-to-increase-their-cooperative-efforts-on-hed#comments Wed, 03 Feb 2010 01:34:29 +0000 admin http://www.metabank.ch/?p=5354 The fifth “strategic dialogue” between the Securities and Exchange Commission and Financial Services Authority produced a deal to expand a 2006 memorandum of understanding on consultation, cooperation and information exchange. The two sides agreed to increase their cooperative efforts on hedge fund adviser surveillance, as well as that over credit ratings agencies and derivatives clearing.

“Global cooperation between regulators is central to tackling the reform agenda and the relationship between the FSA and the SEC is key for international markets,”

FSA CEO Hector Sants said.

“Our ongoing dialogue gives us the opportunity to widen the areas of cooperation between the FSA and the SEC, in particular progressing our collaborative work on hedge funds and credit rating agencies.”

In addition to the agreement on greater cooperation, Sants, FSA Chairman Adair Turner and SEC Chairman Mary Schapiro also discussed hedge fund regulation, among other issues.
(c) FINalternatives
See also:
Securities and Exchange Commission Chairman Mary Schapiro and UK Financial Services Authority (FSA) Chairman Adair Turner and Chief Executive Hector Sants met in London as part of the SEC-FSA Strategic Dialogue - Press Release

]]> http://www.metabank.ch/sec-fsa-to-boost-cooperation-on-hedge-funds-us-and-british-regulators-agreed-to-expand-their-cooperation-on-hedge-fund-oversight-the-two-sides-agreed-to-increase-their-cooperative-efforts-on-hed/feed http://www.metabank.ch/mps-fly-out-to-meet-american-financial-leaders-members-of-the-commons-treasury-select-committee-which-is-in-the-middle-of-an-inquiry-into-whether-big-banks-should-be-forced-to-carve-themselves-up http://www.metabank.ch/mps-fly-out-to-meet-american-financial-leaders-members-of-the-commons-treasury-select-committee-which-is-in-the-middle-of-an-inquiry-into-whether-big-banks-should-be-forced-to-carve-themselves-up#comments Wed, 03 Feb 2010 01:09:55 +0000 admin http://www.metabank.ch/?p=5342 The MPs, from all three of the big political parties, will visit New York and Washington, where they are scheduled to meet Paul Volcker, the former chairman of the US Federal Reserve who is head of President Obama’s Economic Recovery Advisory Board. Mr Volcker is a vocal supporter of forcing big lenders to separate deposit-taking operations from riskier investment banking divisions. Mr Obama unveiled radical plans last month to reform the American banking sector, including banning lenders from investing in hedge funds.
The delegation is hoping to meet Ben Bernanke, the Chairman of the Federal Reserve, and Timothy Geithner, the US Treasury Secretary. It also wants to see representatives of the US Securities and Exchange Commission, Wall Street’s regulator, and Barney Frank, the Democrat chairman of the House Financial Services Committee, which has a similar remit to the Treasury Select Committee in scrutinising the banking and insurance industry and the capital markets. (c) The Times

]]> http://www.metabank.ch/mps-fly-out-to-meet-american-financial-leaders-members-of-the-commons-treasury-select-committee-which-is-in-the-middle-of-an-inquiry-into-whether-big-banks-should-be-forced-to-carve-themselves-up/feed http://www.metabank.ch/lse-gives-private-investors-chance-to-trade-in-bonds-the-london-stock-exchange%e2%80%99s-new-bonds-trading-service-goes-live-this-morning-offering-private-investors-the-chance-to-buy-corporate-bond http://www.metabank.ch/lse-gives-private-investors-chance-to-trade-in-bonds-the-london-stock-exchange%e2%80%99s-new-bonds-trading-service-goes-live-this-morning-offering-private-investors-the-chance-to-buy-corporate-bond#comments Tue, 02 Feb 2010 03:02:13 +0000 admin http://www.metabank.ch/?p=5333 In all, 21 private client brokers will offer the service, allowing retail punters the chance to buy bonds in packages as small as £1,000 a time. Three firms will make a market. Traditionally, bonds, which are corporate or government debt, have been bought by institutions over the counter in lots of £50,000 or more.
The LSE, amid much razzmatazz, will launch its new electronic retail bond trading service. At first the offer is limited to 49 gilts, or government bonds, and ten corporate bonds from blue-chip companies such as Tesco, BT, GlaxoSmithKline and National Grid.
Bonds are a form of debt offering a fixed rate of return, or coupon, which are redeemable and their face value repaid to the holder after a fixed period. Typically, a corporate bond might offer in excess of 5 per cent, as against the base rate of 0.5 per cent and rates not a great deal higher than that available from banks and other institutions to the retail lender. As a consequence, bonds have been among the best-performing investments over the past couple of years for those institutions holding them, and the LSE and the brokers taking part hope that retail investors will be keen to invest.
Research from APCIMS, the retail stockbrokers’ trade body, suggests that at present retail investors own £20 billion-worth of corporate bonds.
A spokesman for Killik & Co, the broker, said that there had been “huge interest” from investors for bonds over the past year. But interest in the new LSE market had been muted:

“I don’t think there’s been a huge uptick. I think there’s an educational process.”

Present at the LSE’s offices in Paternoster Square, will be Lord Myners, the City Minister, and Philip Hammond, the Shadow Chief Secretary to the Treasury.
There has been concern that the retail investor may be in danger of coming to the market too late and missing out on the gains made by institutions. If inflation, and therefore interest rates, start to rise, the attraction of bonds reduces.
An LSE spokesman countered:

“The market is for the long term. We’re not launching it because interest rates are low and we think private investors will get a quick buck from it.”

(c) The Times

]]> http://www.metabank.ch/lse-gives-private-investors-chance-to-trade-in-bonds-the-london-stock-exchange%e2%80%99s-new-bonds-trading-service-goes-live-this-morning-offering-private-investors-the-chance-to-buy-corporate-bond/feed http://www.metabank.ch/germany-willing-to-pay-for-secret-swiss-bank-data-the-german-government-say-its-likely-to-buy-data-on-possible-tax-evaders-that-media-say-an-informant-has-offered-to-sell-authorities-the-case-cou http://www.metabank.ch/germany-willing-to-pay-for-secret-swiss-bank-data-the-german-government-say-its-likely-to-buy-data-on-possible-tax-evaders-that-media-say-an-informant-has-offered-to-sell-authorities-the-case-cou#comments Tue, 02 Feb 2010 01:28:54 +0000 admin http://www.metabank.ch/?p=5329 German Chancellor Angela Merkel said on Monday that she was in favor of acquiring the information on citizens who had allegedly sheltered millions in secret Swiss bank accounts.

“Like every reasonable person, I support doing everything we can to clamp down on tax evasion,”

Merkel told reporters.

“If this data is relevant we should aim to get hold of it.”

German media reported over the weekend that an informant had offered data of up to 1,500 possible tax evaders with accounts in Switzerland which could lead to 100 million euros for state coffers.
The Frankfurter Allgemeine Zeitung reported that the whistleblower is asking for 2.5 million euros for the confidential data.
German newspaper Financial Times Deutschland reported that the data belonged to German clients of HSBC. The paper said the data had come from a computer specialist at an HSBC bank in Geneva.
Politicians divided over buying stolen data
The case could spark a fight about banking secrecy between Germany and Switzerland. Top Swiss politicians, including President Doris Leuthard, and bankers warned Germany against acquiring the data.
In 2008, the German government paid an informant as much as five million euros for a CD containing a list with the names of German tax evaders with bank accounts in the Alpine principality of Liechtenstein.
The latest case has prompted heated debate in Germany about the legality and morality of buying a CD with information obtained illegally.
A senior ally of Chancellor Angela Merkel, Defense Minister Karl-Theodor zu Guttenberg, said the government would need to check the legal validity of the data.
“I have a problem with handing over money for something that has come into someone’s possession in a legally questionable fashion,” Guttenberg told Swiss daily Neue Zuercher Zeitung.
Questions of legality
The moral questions raised have prompted a debate across the political spectrum, with Switzerland warning that buying the CD would be illegal.

“Generally speaking we believe that it is difficult for states to use illegal data,”

said Swiss President Doris Leuthard.

“This would mean doing business with criminals, which is against the law.”

Members of opposition parties in Germany have encouraged the government to buy the data on behalf of “honest taxpayers.” Some politicians from Chancellor Merkel’s Christian Democratic Union have also called for the purchase of the CD to be considered.
Hot topic in the press
Officials in Berlin confirmed the reports after the Frankfurter Allgemeine Zeitung and Sueddeutsche Zeitung first reported on the offer.
The informant reportedly handed over information on five individuals to prove the data’s validity.
Both newspapers reported the data was offered to tax officials in the western state of North Rhine-Westphalia.
(c) mz/rc/acb/AFP/dpa

]]> http://www.metabank.ch/germany-willing-to-pay-for-secret-swiss-bank-data-the-german-government-say-its-likely-to-buy-data-on-possible-tax-evaders-that-media-say-an-informant-has-offered-to-sell-authorities-the-case-cou/feed