Building the appropriate financial regulation to foster stability and growth

1. Building the appropriate financial regulation to foster stability and growth Draft Agenda – 16.01.2013

2. Wednesday, 10 April Thursday, 11 April 2013 Friday, 12 April REGISTRATIONS Addressing collateral management challenges Tbd Opening speeches: The EU financial sector following the crisis and main priorities of the Irish EU Presidency in the financial area 8:30 - 9:00 Progress in banking reforms to restore confidence and safety (CRD4, Banking Union, EU crisis management framework, structural banking reforms,…) Retail electronic payments 9:15 – 10:45 Closing session tbc Improving EU investment fund and market finance regulations to combine safety and innovation Solvency II: possible evolutions following the EIOPA impact assessment Improving RWA evaluations and risk disclosure practices 11:00 - 12:30 12:30 - 13:00 Wrap up / Exchange of views on investor protection challenges BUFFET LUNCH Improving the safety and efficiency of EU securities and derivatives markets (Market Infrastructures resolution, margining rules, Securities Law Legislation, MiFID II…) Enhancing the financing of long term projects 14:00 - 15:30 Exchange of views on financial regulation and economic growth 15:30 – 16:00 Challenges and feasibility for corporates and SMEs of non-bank financing in the context of Basel 3 banking evolutions 16:00 - 17:30 Improving the global consistency of financial regulations (market regulations, banking and insurance regulations, investment funds regulations…) Registrations: 17:45 - 18:00 17:30 - 19:00 18:00 - 19:30 : Exchange of viewsChallenges posed by the present monetary, economic and regulatory context to the EU financial sector Closing remarks and exchange of views with members of the Ecofin: role of financial sector in overcoming growth challenges in the present economic and fiscal context 19:00 – 20:00 20:00 to 20:45 COCKTAIL 20:00 – 20:45 19:45 to 21:00 Welcome Cocktail GALA DINNER Reconciling financial stability and growth in the EU 20:45 – 22:00

3. Date of the seminar • 10 April (6 pm) - 12 April 2013 (10 am) on the eve of the informal ECOFIN • Welcome cocktail on 10 April at 7.30 pm • Gala dinner on 11 April at 8 pm • Location of the seminar and of the gala dinner Four Seasons Hotel, Dublin • Format: • - Closed-door event reserved to a selected audience of 200 / 250 public and industry representatives • - Roundtable discussions, introduced by 2 or 3 speeches, for exchanges of views between public decision makers and industry leaders members of Eurofi • - Chatham House rules • - No press as a general rule

4. REGISTRATIONS: 17:45 – 18:00 • Exchange of views: challenges posed by the deleveraging process and the present monetary, economic and regulatory context to the EU financial sector • What is the magnitude of the deleveraging processes in the EU regarding States, corporates, households? Do these vary across EU member states? • Are the current monetary and economic policies (low interest rates, central bank lending facilities, quantitative easing policies, fiscal restraint…) compatible with the objective to deleverage EU and non-EU economies? Which economic actors (States, municipalities, banks, corporates, households…) benefit the most from these monetary and economic policies? May these policies encourage asset bubbles? What evolutions of economic and monetary policies can be envisaged in the future to be compatible with the deleveraging objective? • What are the consequences of the deleveraging processes and the current monetary, economic and regulatory evolutions, for banks and insurers (e.g. evolution of ROE, modification of banks and insurers’ role in the financial value chain, asset and liabilities gaps in insurers’ balance sheets, etc.), financial market operators and investors (e.g. asset allocation policies)? What evolutions should be envisaged in this context? 18:00 - 19:30 WELCOME COCKTAIL 19:45 - 21:00

5. REGISTRATIONS • Opening Speeches: • The EU financial sector following the crisis and main priorities of the Irish EU Presidency in the financial area • Will the EU financial sector be safer with the implementation of the G20 regulatory package? What progress has been made so far? • What lessons can be learned from the Irish experience during the crisis and from the results of the measures put in place? • What are the priorities of the Irish EU Presidency in terms of financial regulation and supervision to ensure sufficient stability of the financial sector and facilitate economic growth? 8:30 - 9:00 • Progress in banking reforms to restore confidence and safety • (Banking Union, EU crisis management framework, structural banking reforms, CRD IV…) • What are the main evolutions in the banking sector targeted with the implementation of the new EU regulatory frameworks (Banking Union, EU crisis management framework, CRD IV, EBA stress testing…) e.g. reinforced solvency / loss absorbency / liquidity, deleverage, reduction of certain financial activities, improved governance, Can one expect to put an end to bail-outs? Has confidence and soundness of the EU banking sector already improved? Why is the inter-bank market still frozen and the valuation of banking groups depressed? • What additional benefits are expected from structural banking reforms? Are these proposals appropriate? What improvements may be required? • What importance should be given to implementing improved macro and micro supervision mechanisms compared to additional financial regulation / prudential requirements ? Are the existing EU macro prudential mechanisms sufficient to detect and fight future asset bubbles, credit crunches or excessive market risks? • Retail electronic payments • What impacts will the new EU payments framework have on competition and user choice specially in the EU eCommerce environment? • How can new and innovative forms of payment be appropriately incorporated into the regulatory framework? • How can Europe develop an open and inclusive standard setting process in the payments market and how can international consistency be achieved on the global level? • How to ensure the competitiveness of Europe in the area of mobile payments? 9:15 - 10:45 • Improving EU investment fund and market finance regulations to combine safety and innovation (UCITS VI, MMFs, securities lending, securitisation…) • What regulatory approach for EU MMFs and particularly CNAVs? Will the rules proposed by IOSCO enable to avoid runs while answering the needs of EU investors? How should the IOSCO proposals be adapted to the EU context where most MMFs are UCITS? What impacts of the proposed rules are expected on the EU MMF market? • Should UCITS eligible assets be reviewed? How should OTC derivatives be addressed in UCITS? How to mitigate asset re-hypothecation risks? • What improvements are required for efficient portfolio management techniques (securities lending…) in UCITS eg review of collateral, of haircut rules? Should they be addressed in a horizontal way for the various investment products using these techniques? • What are the priorities for mitigating securitisation risks (e.g. risk retention, disclosure, securitisation process, use of CRAs…)? How to build on IOSCO recommendations? • Solvency II: possible evolutions following the EIOPA impact assessment • What limitations of the Solvency II framework have been revealed by the current economic crisis ? • What impacts of Solvency II on long term financing? • What evolutions of the insurance regulatory framework are suggested by the EIOPA assessments ? What are the merits and limitations of the different tools tested by EIOPA e.g. matching premium, countercyclical premium, matching adjustment, etc.? What transitory measures could enable an easier implementation of the new solvency regime for insurance companies in the EU? • What evolutions of the solvency regime are related to Level 1 legislation? What would be the appropriate timetable to implement Solvency II? • What are the possible competition and safety issues for EU insurance groups which also operate in countries that have non risk based regulation? • Improving RWA evaluations and risk disclosure practices • What issues have been raised during the financial crisis and more recently, regarding the models used by banks for assessing risks? What are the main inconsistencies across banks and regions, related to risk weightings (in both banking and trading books) highlighted by the reviews performed by EU and global regulators (EBA, BCBS)? • What are the impacts of these issues and inconsistencies on the adoption of the new risk-based regulatory framework for banks (e.g. delay of the implementation in the US, etc) and the confidence of investors on the banking sector? • What are the pros and cons of possible alternatives to risk based regulations in the financial area? What are the success factors for an adequate use of risk assessment techniques in particular by the management of banks and supervisors? What regulatory initiatives would be required to improve the situation? 11:00 - 12:30 • Wrap up / Exchange of views on investor protection challenges • Do existing product and distribution rules appropriately address investor protection challenges? Should their consistency be enhanced across investment products answering similar needs? Does the supervision of product management need to be enhanced? • What additional challenges may a move towards a more market-led economy raise in terms of in investor protection and how may they be addressed? 12:30 - 13:00 BUFFET LUNCH

6. Improving the safety and efficiency of EU securities and derivatives markets (FMI resolution, margining rules, MiFID II pending issues, SLL…) • What specificities of CCPs and CSDs should be taken into account in a financial market infrastructure (FMI) recovery / resolution regime? What mechanisms should be put in place to avoid / manage failures of FMIs and ensure continuity? Is public intervention required in some cases? How can interconnections and the cross-border/global context be taken into account? Should derivative CCPs be addressed specifically? • Do the margining rules for uncleared OTC derivatives trades put forward the appropriate incentives? What possible impact on liquidity? Should the scope of application be fine-tuned? What implementation approach is required? Are the margin methodologies appropriate? • Is the market structure defined in MiFIDII/MiFIR likely to foster more safety and efficiency in EU capital markets and to appropriately support the EU economy? Are MiFIDII rules appropriate for managing large orders (eg discretion, commitment of capital…)? Do MiFID II/MiFIR rules allow appropriate price formation and transparency? Are the issues posed by HFT well addressed? • Enhancing the financing of long term projects • How to identify long term projects (eg financing of infrastructures, municipalities, industrial projects or assets…) with sufficient potential to provide medium and long term sustainable growth? What criteria should be used and what should be the respective roles of the private and public sectors in selecting projects? What additional financing is required for such projects in the EU, is there a potential shortage of financing? • How to facilitate the investment in long term assets (e.g. specific asset class, investment vehicles / products, regulatory framework, tax incentives, rating enhancement…)? What may be the impacts of Solvency 2 and Basel 3 on long term financing? How to take the specificities of long term projects into account in insurance / pension fund regulations (Solvency II, IORP)? How to develop the information, data, capabilities required? • What should be the role of the EU institutions, public and private banks , non-banks and States in the financing of long term projects? What political support may be required? 14:00 - 15:30 15:30 - 16:00 Exchange of views on financial regulation and economic growth • Challenges and feasibility for corporates and SMEs of non-bank financing in the context of Basel 3 banking evolutions • How is the role of banks expected to evolve in the future regarding the financing of corporates and SMEs in the context of Basel 3 rules? What impacts may the liquidity ratios of Basel 3 (LCR, NSFR) and their possible effect on maturity transformation have for corporate / SME financing? What impact may this evolution have on the financing of corporates of different sizes ie large, small and mid caps, SMEs? • How to progress non-bank financing of corporates and SMEs in the context of a changing role of banks? What role is expected from investment funds, insurance companies, pension funds, exchanges… in the context of their specific regulations? What regulatory frameworks, supervision, incentives and industry environment - ie vehicles, distribution / platforms, capabilities (ratings, analysts, …) - are required for non-bank financing? How to facilitate greater small & mid cap / SME access to non-bank debt or equity funding (private equity, specific high yield market, trading platforms…)? How to favour investment in small and mid cap / SME equity and debt at the EU level? Can lessons be drawn from different EU and non-EU experiences? • What are the possible risks of a transfer to a market-led economy (e.g. investor protection…) and how to mitigate them? Is there a risk that market-led finance may not compensate for reductions in the financing provided by banks, for which types of companies and how to manage the transition? What issues may hinder the development of market led finance (e.g. FTT, constraints on market making or shadow banking activities…)? 16:00 – 17:30 • Improving the global consistency of financial regulations • What are the main areas of the on-going reforms in which consistency is most required (market regulations, banking and insurance regulations, investment funds regulations…)? What are the main consistency issues on the global level? What are the possible consequences of these differences in terms of stability, overall efficiency…? • How can the main existing consistency issues be solved? How to facilitate cross-border access when regulations have equivalent outcomes? What are the main priorities and next steps? • What lessons can be drawn from the experience of drafting and preparing the implementation of rules derived from the G20 commitments (ie Basel III, OTC derivatives requirements…)? What role can the institutions (supra-national, regional and domestic) play in order to improve the consistency of rules? What tools are required in terms of developing and enforcing rules? Should the legislative process evolve in order to improve global consistency? 17:30 – 19:00 • Closing remarks and exchange of views with members of the Ecofin Council: role of the financial sector in overcoming growth challenges in the present economic and fiscal context • Can significant growth be an objective in the context of a deleverage of the economy requested by policy-makers? • What role may the financial sector play in fostering growth compared to other drivers such as reforms of public spending, reduction of production cost, fostering research and innovation…? In what way may financial regulation facilitate or hinder this role of the financial sector? • How can the project of a “genuine Economic and Monetary Union” called for by the EU Council contribute to overcoming growth challenges? 19:00– 20:00 20:00– 20:45 COCKTAIL GALA DINNER Keynote speeches Reconciling financial stability and growth in the EU 20:45– 22:00 6

7. Confirmed speakers in Bold • Addressing collateral management challenges • Can a sustainable equilibrium be found in the market between the supply and demand for collateral? Can confidence be sufficiently rebuilt to reduce the need for collateral? What would be the consequences of a collateral shortage for financial players and the EU economy? How to ensure that meaningful products are not affected by a potential shortage of good quality collateral? • Are the present solutions put in place by the industry to optimise the use of collateral sufficient at market level? To what extent can the range of collateral accepted (eg by CCPs) be expanded? How can the potential issues related to scalability, impact on banks’ balance sheets, etc… be solved? Can cash rich investors be encouraged to feed liquidity into the market? • For which issues may public action be most valuable e.g. securities law (legal ownership, collateral re-use /rehypothecation rules), market infrastructures access and interoperability rules, eligible collateral rules…? How can the procyclicality of collateral be reduced? Tbd 8:30 - 10:00 Closing session tbc 10:00 - 11:00

8. Confirmed speakers in Bold REGISTRATIONS: 17:45 – 18:00 Exchange of views: challenges posed by the present monetary, economic and regulatory context to the EU financial sector Chair: J. de Larosière Speakers: EU Presidency (M. Noonan, P. Honohan), ECB (P. Praet), BIS (tbd), Blackrock (P. Fisher), Deutsche Bank 18:00 - 19:30 WELCOME COCKTAIL 19:45 - 21:00

9. Confirmed speakers in Bold Confirmed speakers in Bold REGISTRATIONS Opening speeches: The EU financial sector following the crisis and main priorities of the Irish EU Presidency in the financial area Chair: J. de Larosière Speakers: Irish Finance Minister (M. Noonan), Governor of the Central Bank of Ireland (P. Honohan), BIS (J. Caruana) 8:30 - 9:00 Progress in banking reforms to restore confidence and safety (Banking Union, EU crisis management framework, structural banking reforms, …) Chair: S. Goulard (MEP) Introductory remarks: E. Liikanen, S. Ingves (BCBS), Crédit Agricole Speakers: Public authorities: EBA (A. Enria), FSB (S. Andresen), EU Commission (J. Faull), MEP (W. Klinz), Central Bank of Ireland (P. Brady) , French Ministry of Finance (H. de Villeroché) Industry: BBVA (C. Torres) , Santander, HSBC (D. Flint), Standard Chartered (P. Walkden), Credit Suisse, DSGV (KP. Schackmann-Fallis), BNP Paribas (B. Prot) Jacques de Larosière Retail electronic payments Chair: G. Tumpel-Gugerell Introductory remarks: Western Union (H. Ersek) Speakers: Public authorities: EU Commission (N. Calvino), ECB, Irish authorities, MEP (S. Terho) Industry: Swift (G. Leibbrandt), EPC (J. Santamaria), Banque Postale, Visa, e-commerce player 9:15 - 10:45 Improving the regulation of EU investment funds and market finance activities to combine safety and innovation (UCITS VI, MMFs, securities lending, securitisation…) Chair: D. Wright (IOSCO) Introductory remarks: tbd Speakers: Public authorities: EU Commission (E. Paulis), MEP (S. Giegold), ESMA (S. Maijoor), Bank of Ireland (tbd) Industry: Blackrock, Amundi, Fidelity, other asset manager, Société Générale Solvency II: outcome and possible recalibrations following the EIOPA impact assessment Chair: EU Commission(N. Calvino) Introductory remarks: EIOPA (G. Bernardino), Axa (D. Duverne) Speakers: Public authorities: MEP (B. Balz), French Prudential Sup. Auth. (D. Nouy), BAFIN (E. König), Irish Authorities Industry: Allianz (D. Wemmer), Swiss Re, CNP Assurances, S&P Improving RWA evaluations and risk disclosure practices Chair: JM Campa Introductory remarks: tbd Speakers: Public authorities: EBA (P. Haben), BIS (J. Caruana), ECB, MEP (O. Karas), BCBS (S. Ingves), EU Commission (M. Nava), Bundesbank (S. Lautenschläger), MEP (E. Ferreira) Industry: Deutsche Bank, Unicredit (R. Nicastro), PWC (E. Boris), Moody’s (M. Madelain), BPCE (F. Pérol) 11:00 - 12:30 Wrap up: J. de Larosière , BPCE (F. Pérol), EU Commission 12:30 - 13:00 BUFFET LUNCH

10. Confirmed speakers in Bold Improving the safety and efficiency of EU securities and derivatives markets (FMI resolution, margining rules, SLL, MiFID II pending issues…) Chair: B. Coeuré (ECB) Introductory remarks: JP Morgan (B. Masters) Speakers: Public authorities: ESMA (V. Ross), EU Commission (E. Paulis), MEP (K. Swinburne), Bank of England (P. Tucker), BAFIN, EBA (A. Farkas) Industry: Euroclear (MA. Autheman), ICE, Nasdaq OMX, NYSE Euronext, Tradition, Goldman Sachs, State Street (tbc) Enhancing the financing of long term projects (following the green paper on long term investment…) Chair: A. Laboul (OECD) Introductory remarks: EIB (W. Hoyer) Speakers: Public authorities: EU Commission (M. Nava), IMF, MEP (P. Skinner), EIOPA(C. Montalvo), Industry: CDC (JP. Jouyet), CDP (F. Bassanini), Allianz (D. Wemmer) Amundi, Stock exchange, La Banque Postale, Deutsche Bank 14:00 - 15:30 Exchange of views on financial regulation and economic growth – Chair: J. de Larosière G20 (A. Siluanov), Bundesbank (J. Weidmann), US regulator SEC (E. Walter), Goldman Sachs (G. Cohn) 15:30 - 16:00 Challenges and feasibility for Corporates and SMEs of non-bank financing in the context of Basel 3 banking evolutions Chair: J. Moran (EU Presidency) Introductory remarks: Bank of England (P. Tucker), Axa (D. Duverne) Speakers: Public authorities: EU Commission(N. Calvino), AMF (B. de Juvigny), ESMA (S. Maijoor), EBA(I. Vaillant), MEP (tbd), Danish Central Bank (P. Callesen) Industry: BME, La Caixa (J.Gual), EIB (W. Hoyer), Moody’s (M. Madelain), Irish Stock Exchange (D. Somers), Allianz GI, KfW, Unicredit (R. Nicastro) 16:00 – 17:30 Improving the global consistency of financial regulations (market regulations, banking and insurance regulations, investment funds regulations…) Chair: S. Andresen (FSB) Introductory remarks: IOSCO (G. Medcraft),SEC (E. Walter), DTCC (M. Bodson), BofAML Speakers: Public authorities: EU Commission(J. Faull), MEP (S. Bowles), Hong Kong regulator (A. Alder), CFTC (J. Sommers), J. de Larosière Industry: Goldman Sachs, JP Morgan, S&P, UBS, Asset manager, BONY Mellon, KPMG (tbc) 17:30 – 19:00 Closing remarks and exchange of views with members of the Ecofin Council: role of the financial sector in overcoming growth challenges in the present economic and fiscal context Chair: J. de Larosière Speakers: Public authorities:J Moran (EU Presidency), P. Moscovici, R. Sadzius, V. Grilli, L. de Guindos Jurado, M. Hoban, V. Gaspar, IMF (C. Lagarde), EU Commission (M. Barnier), G20 Presidency (A. Siluanov), ECB (P. Praet) Industry: BofAML (tbc) 19:00– 20:00 COCKTAIL 20:00– 20:45 GALA DINNER Reconciling financial stability and growth in the EU Keynote speeches: M. Noonan, M. Draghi, W. Schäuble 20:45– 22:00

11. Confirmed speakers in Bold Tbd Addressing collateral management challenges Chair: tbd Introductory remarks: tbd Speakers: Public authorities: EU Commission (E. Paulis), ECB (B. Coeuré), Lithuanian regulator, EBA (I. Vaillant) Industry: BONY Mellon, Euroclear, BPSS, DTCC (P. Axilrod), JPMorgan , LCH Clearnet (tbc) 8:30 - 10:00 Closing session tbc 10:00 - 11:00

12. ABOUT EUROFIThe European Think Tank dedicated to financial services • A not-for-profit organization created in 2000 chaired by Jacques de Larosière • A platform for exchanges between the financial services industry and the public authorities addressing issues related to the evolution of financial regulation and supervision • Main activities • The main objectives of Eurofi are to help industry and public decision-makers reach a common understanding of possible evolutions required in the regulation and supervision of financial services and to open the way to legislative or industry-driven solutions.Eurofi acts as a catalyst for the market and as a neutral go-between connecting diverse financial industry players and the public authorities. • Eurofi has two main types of activities conducted by Didier Cahen, Secretary General of Eurofi, Jean-Marie Andrès and Marc Truchet, Senior Fellows: • Research and documentation: • Assessments and proposals taking into account economic, risk and end-user impacts, prepared with the support of cross-sectoral working groups comprising members of Eurofi. • Topics addressed include prospective and currently debated issues related to financial regulation and supervision in an EU and global context, as well as industry trends. • Regular interactions organized with representatives of the public authorities and other stakeholders (e.g. end-users, experts) to discuss and fine-tune assessments and proposals. • Events and exchanges of views: • Eurofi Financial Forum: a yearly public international Forum gathering together industry leaders and EU and non-EU public decision makers for high level discussions on the major regulatory projects in the financial area, as well as informal networking. • High level seminars and workshops organised regularly to facilitate exchanges of views on regulatory issues between the members of Eurofi and key public decision makers: for example high level seminars organized in 2012 with the Danish EU Presidency and in 2011 with the Presidency of the G20 to address regulatory topics on the agenda of the G20.These international events are organised with the support of Christian Hawkins. • Main topics currently addressed • Current evolutions of the prudential and regulatory framework of banks and insurance companies: fine-tuning of CRD IV, impacts of CRD IV and Solvency II on the financing of the economy, structural reforms of the banking sector (Liikanen report),  addressing appropriately the systemic importance of diverse financial institutions (banks, market infrastructures, insurance companies),  regulation of the shadow banking sector, EU crisis management framework, conditions for a smooth evolution towards a more  market-led EU economy, risk disclosure practices to favour financial stability… • Capital markets and investment products regulations: regulation of securities, derivatives and commodities markets and trading and post-trading infrastructures (MiFID review, CSD regulation, EMIR), evolutions in asset management regulations (AIFMD, ETFs, specific fund regulations, possible evolutions of UCITS…), investor protection regulation (PRIPs, MiFID, IMD…) and fund depositary rules (UCITS V), extra-territoriality and cross-border access rules… • Optimizing the EU financial services internal market: addressing the increasing fragmentation of EU financial activities prompted by the crisis, conditions for enabling a sustainable SEPA business case, review of the IORP directive, regulation of CRAs… EUROFI MEMBERS The membership of Eurofi comprises many leading global and European financial institutions from different sectors of the industry (banking, insurance, market infrastructures, asset management, credit rating agencies…). 12