With world financial markets in turmoil and the economic prospects of many European countries looking weak this is a vital and challenging time for all involved with the treasury profession. Against this background, as Chairman of the EACT, I will continue to seek to provide a unifying focus for issues that, on a European level, affect how the members of the national associations can operate.
Through our website we endeavor to provide useful informative about the EACT and provide a conduit for visitors to access the websites of the individual treasury associations making up the EACT.
The EACT has published a position statement commenting on the EU's proposed Money Market Funds regulation. The EACT argues that for the real economy there is one fundamental flaw in the proposal - the bar on the use of external credit ratings. The EU's intention to require CNAV funds to hold a capital buffer is also highlighted as a measure that is likely to make the CNAV product unviable; the EACT proposes instead improvements in disclosure and the use of liquidity gates and fees, the combination of all of which would better support the real economy than introducing capital buffers. Read the full position statement here >>
Richard Raeburn, Chairman of the European Association of Corporate Treasurers, explains to Madison Marriage of the Financial Times why European corporates could lose out as a result of the new Money Market Fund Regulation recently unveiled by the European Commission. Please click here to view the video >>
The EACT has responded to the European Commission consultation on the Review of the European System of Financial Supervision. Our response underlines the urgent need to review the stakeholder representation within the European Supervisory Authorities (ESAs) and in particular the European Securities and Markets Authority (ESMA), in order to allow for more balanced and more relevant stakeholder representation. The EACT expresses its special disappointment with ESMA's repeated failure to appoint corporate treasury representatives to the stakeholder groups, while corporate treasurers have been and will continue to be heavily impacted by financial services legislation. Read the EACT's response here >>