We are told by historians that the first 14 years of a century often defines what the century will be most remembered for.
So as we enter 2015, perhaps we should start to ask ourselves what the Millennials will want to be most noted for. In all walks of life we certainly see many challenges to the accepted “old order”. At the turn of the century we weren’t “globally connected”. The pace of change is terrific. There was no real social media, no Wi-Fi, no smartphones, yet today these play an important role in our lives and even help shape the news and the political agenda. Do you remember when the ‘cloud’ was merely just a weather pattern?
Fortunately some things seemingly don’t change. We can still rely on ‘déjà vu’ or ‘groundhog day’. Grexit is back, or even for some Gerxit. Ah yes…read my blog “Are you in the zone?” from June 2012. The ACT advice given by our Policy & Technical team still applies. This time though the political backdrop is even more spiced up. So, during 2015 will the poll results in Greece, Finland, Estonia, Spain, Poland, Denmark and Britain usher in a new era? Will the ECB manage to ease the Euro quantitatively and prudently without upsetting national sensitivity? Will we even start talking about Basel V (and you thought it was just a trilogy)?
Well, my advice is not to start worrying about it yet. The most pressing need is to ensure that non-financial companies do not lose the exemption granted for derivatives under (EMIR) CRR. In short, it would appear likely (as gleaned from a recent public consultation process in December), that the European Banking Authority (EBA) has concluded that the CVA exemption granted under Article. 382 para. 4 of the CRR is unnecessary. Furthermore, there is even a suggestion that any change would be made via use of the pillar 2 CRD/CRR framework. Frankly, so what? Frankly, a lot. Be prepared to shout about this. The EACT already are.
So, 2015 will prove to be a fascinating year….a risky year. We have terrific plans to support you and to help maximise your finance and treasury career potential.
Be wise, buy wise, wise up.
Best of luck,
