Refinitiv Webinar

Compliance and Sustainability – Value creating third-party risk programmes

Webinar description: “Following a survey of 1,800 global third-party risk professionals, we are hosting a two-part webinar series to review the findings – focusing on the relationship between compliance and sustainability, and the impact on third-party risk programmes.

In the first webinar we explored the reasons to review third-party risk programmes, and in the upcoming webinar on Tuesday 26th May we will discuss practical aspects of how to turn third-party risk programmes into centres of value creation.

  • What are the expectations of investors in terms of the supply chain and third party risk networks?
  • How can we efficiently incorporate ESG concerns into third-party risk programmes?
  • How can we introduce automation in workflows and research given the growing complexity of supply chain networks?”

Webinar

Date:   26th May

Time:  14:00 BST| 15:00 CEST

Please register – https://refini.tv/2TebD8W –  if you would like to attend this webinar. If you are interested but you’re unavailable, register and Refinitiv will send you the webinar recording.


 

China Policy Update by Dentons and China Europe International Exchange

In terms of level playing field engagement in international cooperation, governments are seeking different measures. The German Foreign Trade and Payments Act—to be put in place this summer—is one of these policies. Who is affected by the decision? What does it mean in detail? Learn more in the China Policy Update provided by Dentons and China Europe International Exchange (CEINEX).

China Policy Update

28 May 2020

10.30-11.30 CEST (16.30-17.30 CST)

Register here.

 

What will the post-COVID era look like in Africa? What are the challenges and opportunities?

Our partner Casablanca Finance City will host a webinar on the challenges and opportunities that the post-Corona era provides for Africa:

Lockdown may progressively be lifting in Africa but its impact will live on. Casablanca Finance City is bringing together international experts and representatives from companies operating in Africa, to discuss the outlook and prospects of post-COVID Africa.

The panel will cover field experiences from different industries and the impacts on their respective businesses:

  • How will the private sector be impacted in Africa?
  • How is the financial services community supporting companies operating on the continent?
  • How can the digitalization boost be leveraged to support economic recovery? What are the risks?
  • What are the social impacts between employers and employees?

 

Understanding the landscape in a post Covid era: Outlook and prospects in Africa

Wednesday, May 20, 2020

12:00 pm Casablanca Time (UTC)

Moderator: Peter Walts, COO, ELA Alliance

Register here.

German-British Chamber of Industry & Commerce Webinars

The German-British Chamber of Industry and Commerce invites you to a webinar series and online discussions.

It starts with the topic “UK – The Corona-crisis and the impacts on Brexit” on friday, May 15th 2020, 8.00am UK time. Read more

Frankfurt Finance Summit 2018 – Ready, Steady, Go!

On May 29, 2018, well-renowned international and national experts from the financial industry and decision makers gathered at the 8th Frankfurt Finance Summit titled Ready, Steady, Go! Who is ready to set the pace in challenging times? to debate the challenges and the strategic responses to current issues facing the European economy, regulators and financial markets. The decision-makers from central banks, stock exchanges, supervisory authorities, banks, insurance companies, politics, business and academia further discussed the future location and supervision of euro-denominated clearing transactions by central counterparties after Brexit and the advancement of artificial intelligence and the potential implications for financial institutions.

Dr. Lutz Raettig, President of Frankfurt Main Finance, opened the Frankfurt Finance Summit by welcoming the attendees and speakers, ranging from several countries and continents and a broad range of backgrounds in the financial services industry. Dr. Thomas Schäfer, Member of the Hessian Parliament and Hessian Minister of Finance, followed with a welcome address in which he discussed recent legislative proposals by the European Commission concerning EU financial markets, stating that he finds a EU single market to not be necessary. In his opening keynote Dr. Jörg Kukies, State Secretary at the Federal Ministry of Finance discussed the transitional period of Brexit as well as the consequences for EU27 and the Financial Centre Frankfurt. Kukies proudly stated, “If we look at Frankfurt, we see a city in a very good starting position. Frankfurt is one of the continent’s leading financial hubs and plays in the league of the world’s leading financial centres.” Kukies further enumerated a lengthy list of the Financial Centre Frankfurt’s advantages, including its deep talent pool, academic network, and outstanding quality of life. Thereafter, Jeroen Dijsselbloem, former President of the Eurogroup and former Minister of Finance of the Netherlands delivered the European keynote in which he gave an outlook on the potential consequences of Brexit and a political and legal way forward, saying that “For Frankfurt, it’s a good outlook. When I go to the UK, bankers will tell me – they won’t say this publicly of course – that the amount of business and the amount of people they’re going to shift, is larger than what is publicly being talked about and Frankfurt is at the top of the list.”

The impact of Brexit on British financial institutions

The Summit’s first panel addressed tomorrow’s strategic responses to the major questions in the financial industry. Chaired by Prof. Dr. Uwe Stegemann Senior Partner, McKinsey & Company, the panel featured Katharine Braddick, Director General of Financial Services at HM Treasury, Bernd Geilen, Vice-Chairman and Chief Risk Officer at ING-DiBa, Thomas Grosse, Industry Leader Banking and FinTech at Google Germany, Felix Hufeld, President of the Federal Financial Supervisory Authority (BaFin) and Dr. Cornelius Riese, Chief Financial Officer at DZ Bank AG. As part of the debate, Kathrine Braddick discussed the impact of Brexit on the financial services industry in London, saying that Brexit is not a concern for most domestic firms, as they are primarily concerned with UK markets. When discussing the relocation of financial institutions from London to Frankfurt Braddick stated, “I think that first phase of moves is relatively confined. Most firms affected I think they are expecting there will be a second phase and depending on the relationship that we achieve with the European Union and of course our aspiration is a very close relationship on financial services that will determine the scale of that second phase and to me that is currently unknown.” The panel further addressed the challenges of digitalisation from an implementation and regulatory standpoint. This discussion naturally progressed to encompass the demands of recent data protection regulations, like GDPR and PSD2.

The consequences of Brexit for Euro clearing

The Summit continued with a discussion on the future of Euro Clearing after Brexit, beginning with a keynote from Yves Mersch, Member of the Executive Board of the European Central Bank, in which he discussed the potential adaption of legal frameworks regulating Central Counterparties (CCPs) who are located outside of the European Union, stating that  “Ultimately, amending both the European Market Infrastructure Regulation (EMIR) and Article 22 will establish a comprehensive legal framework to address the risks CCPs pose to the Union – both its financial markets and its currency. It will ensure that the EU’s legislators, supervisors and central bank – acting in their respective roles – can adopt the wide range of measures needed to safeguard stability.”

The following panel, moderated by Annette Weisbach, further explored the future supervision of the clearing of euro denominated derivates by CCPs with financial industry experts such as Karin Dohm, Managing Director and Global Head of Government and Regulatory Affairs and Group Structuring at Deutsche Bank, Christoph Hock, Head of Multi-Asset Trading at Union Investment Privatefonds, Erik Tim Müller, Chief Executive Officer at Eurex Clearing AG, Patrick Pearson, Head of Financial Markets Infrastructure and Director General of Financial Stability, Financial Services and Capital Markets Union at the European Commission and Fabrizio Planta, Head of Markets Department at the European Securities and Markets Authority. Diving right into the topic, Eurex’s Erik Tim Müller explained, “Our objective is to talk to the clients and find out what their needs are and the needs that we hear is that today obviously all eggs are essentially all in one basket in London and that seems like a very risky set up given the circumstance. So, what we came up with at Deutsche Börse is a market lead alternative for these market participants to build up a second liquidity pool. […] We came from less than one percent market share 12 months ago to over six percent market share now and rising.”

Giving insights into what is important to asset managers, Union Investment’s Christoph Hock, , highlighted the importance of competition in order to lower transaction costs for the benefit of investors. “You’ve had monopoly structures, take LCH, they’ve had something like […] 95% of interest rate derivatives cleared on LCH and obviously monopoly structures are not beneficial for lowering cost of trading and also when we are looking at innovations, that is completely left aside. […] That’s why we highly appreciate the partnership program Deutsch Börse Eurex offered to the market which caused prices to come down, big offer spreads to tighten. Our assessment is that with this new offering we are able to lower also our cost of trading and in this context our cost of clearing. […] Would we prefer to have a strong second clearing hub here on the continent, i.e. with Eurex? The clear answer is yes,” said Hock.

Artificial Intelligence in the financial industry: a new frontier

The third panel on artificial intelligence in the financial industry began with an impulse speech by Carsten Murl, Head Enterprise Security Solutions Germany at Mastercard, in which he explained how Mastercard is very successfully using artificial intelligence for smart fraud protection throughout their entire stream of transactions addressing various needs. Thereafter, the panel featuring Charles Delingpole, CEO and Founder of ComplyAdvantage, Markus Nigg, COO of ti&m AG, JP Rangaswami, Group Chief Data Officer & Group Head of Innovation at Deutsche Bank AG, Francisco Webber, CEO and Co-Founder of Cortical.io, and Peter J. Wirnsperger, Partner Cyber Risk Services at Deloitte discussed various aspects of data protection and whether artificial intelligence can be understood as the problem or the solution to data security in the financial service industry. During the debate, Deutsche Bank’s JP Rangaswami explored the definition of data safety and the responsibility it brings to companies processing data while highlighting the importance of people feeling secure and empowered by the ability to consent to the usage of private data. Moreover, Deloitte’s Peter J. Wirnspergeremphasised the consequences of data misuse and thus, the importance data protection has, which is something that should be of concern not only to the economy and but society as a whole.

The eighth Frankfurt Finance summit came to an end with closing remarks by Professor Dr. rer. pol. Dr. h.c. Udo Steffens, Chairman of the Executive Board at the Frankfurt Institute for Risk Management and Regulation (FIRM).

Frankfurt Main Finance and the Frankfurt Institute for Risk Management and Regulation would like to thank this year’s sponsors for their generous support. Deutsche Bank was this year’s Gold Partner. Silver Partners included Deloitte, Deutsche Börse Group, DZ Bank, ING-Diba, Mastercard, and Wirtschaftsförderung Frankfurt.

Livestream of Frankfurt Finance Summit

The 8th Frankfurt Finance Summit titled “Ready, Steady, Go! Who is ready to set the pace in challenging times?” is taking place on 29 May 2018 at Kap Europa. Well-renowned international and national experts and decision-makers are meeting to discuss current issues faced by the European economy, regulators and financial markets.

This year’s summit evolves around the strategic responses to challenges faced by the financial industry in times of change and uncertainty. Moreover, the future location and supervision of euro-denominated clearing transactions by central counterparties after Brexit will be discussed by leading financial industry experts. Participants will also debate the advancement of artificial intelligence and the potential implications for banks and financial institutions.

You can watch the summit via livestream!

Financial Centre Breakfast with François Villeroy de Galhau: Sustainable Monetary Policy ensures Economic Stability

On August 31, 2016, the Association of Foreign Banks in Germany and Frankfurt Main Finance hosted the seventh edition of their successful Finanzplatz Frühstück (Financial Centre Breakfast) event series. More than eighty entrepreneurs and representatives of the financial sector, were in attendance to hear François Villeroy de Galhau, Gouverneur of the Banque de France, speak on the topic “European Growth – Challenges in uncertain Times.” Welcoming the audience, Dr. Oliver Wagner, Managing Director of the Association of Foreign Banks in Germany, stressed the importance of foreign banks as a critical economic factor for Frankfurt. “Foreign banks assume responsibility for the local economy and recognize the German Financial Centre as the core market in Europe.”

Villeroy de Galhau wasted no time delving into the current state of monetary policy within the EU and how to ensure sustainable growth. Stressing the importance of investment for growth, especially amongst SMEs, he expressed the need for the Capital Markets Union and the movement of risk and capital across borders. He also weighed in on the ECB’s current strategy of negative interest rates, which has been openly criticized by several German bankers. He described the strategy as a crucial instrument in fighting deflation, which he explained would be more damaging than the negative rates. Villeroy de Galhau continued, stating “Negative interest rates are useful but they are just one among many instruments and have their limits. This is why we have to stick to the current monetary policy. And yes, we’re doing so sustainably.” He did, however, reject the notion of the ECB providing helicopter money directly to consumers.

France and Germany are the major drivers of growth in the Union and, according to the Villeroy de Galhau, still have untapped opportunities to ensure sustainable growth for the future. One proposal highlighted in his address would be a so-to-say Erasmus Pro programme which would offer young people the opportunity to gain vocational training outside of their home country as well as provide them the European experience. Such a programme could be particularly useful for France and Germany. France has a demographic advantage in that they have many more young people than Germany, who boasts one of the best training and educational infrastructures in the world. Alleviating this deficit in skilled labour in both countries, and across the EU, would help to ensure sustainable growth for years to come.

Cooperation between France and Germany in the EU is critical for future growth and the success of the European Project. How does this look, however, in a Europe without the United Kingdom? Speculation is still the name of the game when it comes to Brexit, but Villeroy de Galhau did make it clear that they still want London to be at the centre of European Finance, but as Villeroy de Galhau stated, there will be “no free ride, and no cherry picking.” In other words, the UK must accept and abide by EU rules and regulations in order to gain access to European markets post-Brexit.

Frankfurt Main Finance’s Managing Director, Hubertus Väth, summarized the event, “Mr. Villeroy de Galhau encouraged German entrepreneurs to prepare to invest and take on risk. Only France and Germany can set European growth on an adequate track for growth.” Väth continued, stating, “Monetary policy can only be successful if the economy embraces monetary stimulus by accepting and making investments. In this case, trust plays a central role. Mr. Villeroy de Galhau’s contribution today in further developing this trust is not to be underestimated.”

Frankfurt Main Finance Cup 2016: Eintracht bests Celta De Vigo 3:1

For the third year, the football season opened in the Financial Centre with the Frankfurt Main Finance Cup. This year’s Cup pitted the Spanish RC Celta de Vigo against hometown heroes Eintracht Frankfurt in a friendly match on Sunday, August 14, 2016. The event has become a favorite for families and football fans across the region, who look forward to the events surrounding the game. This year fans enjoyed autograph and photo sessions with their favorite players as well as a presentation of this season’s team and their new home jersey.

Finance meets Football at the Alte Oper

The previous evening, Saturday, August 13, representatives of the Financial Centre and the city celebrated the Frankfurt Main Finance Cup at a reception in the Alte Oper. They were joined by the players and coaches from Eintracht Frankfurt as well as Celta de Vigo. In short podium discussion with Fredi Bobic, Eintracht trainer Nico Kovač expressed his optimism for the upcoming season. Representing Frankfurt Main Finance, Managing Director Hubertus Väth emphasized the importance of football for the Financial Centre and the finance industry for football. “Again the Frankfurt Main Finance Cup is sending the message from the Financial Centre that both the financial sector and Eintracht are playing in the international spotlight. Football always dominates Monday morning discussions throughout Frankfurt’s banks. Tomorrow, we will experience that close relationship between the finance industry in the game against Celta de Vigo.”

 

Frankfurt Main Finance Cup – Schwarz weiß, wie scheeee!

On match day, Eintracht came out as strong as their 40,000 fans in attendance. In the eleventh minute, Branimir Hrgota scored off an assist from Alex Meier and then scored again in the 49th minute. Celta de Vigo found the goal in the 58th minute, closing the gap with a score of 2:1. But Eintracht sealed the deal in the 80th minute and with a two-score lead, the Frankfurt Main Finance Cup was as good as theirs. With a final score of 3:1, Eintracht Frankfurt remained on the pitch to accept the Frankfurt Main Finance Cup. Frankfurt Main Finance’s Dr. Jochen Biedermann presented the Cup to Eintracht Captain Alex Meier. The Cup will join the trophies from the 2014 and 2015 Frankfurt Main Finance Cup in the Eintracht Museum.

BaFin-Tech – Fintech caught between Regulation and Digitalisation

On June 28, 2016, Germany’s Federal Financial Supervisory Authority (BaFin) hosted a new conference, BaFin-Tech 2016, in Frankfurt. The sold out conference was attended by around 200 participants representing FinTechs, investors and the broader financial sector. The aim of the conference was to explore regulatory issues that could affect young FinTech companies and new business models. BaFin-Tech consisted of panel discussions and smaller workshops where attendees could gain closer insight into specific themes like Blockchain, Robo-Advisory, Crowdfunding or alternative payment methods.

In his opening address, President of BaFin Felix Hufeld explained that they operate under the principal of same business, same risk, same rules. Hufeld continued, elaborating that, “Supervisors are not a jury delivering verdicts on business concepts. We don’t put up barriers to insulate established companies and we don’t run an incubator for cool newcomers. We are supervision and will remain so. However, what we do want, is to align our administrative procedures accordingly for you as a growing and increasingly more important audience. Accordingly means understandable, fast and, as far as possible, electronic.” Hufeld even invited promising business models which may fall below the required threshold to work with BaFin.

The second panel discussed whether FinTech is a disruption or an innovation. This conversation juxtaposed those in the FinTech sector like Dr. Oliver Vins of vaamo with established actors like Michael Mandel of Commerzbank. After this discussion, FinTech can arguably be characterised as inspirational. While the new innovations from the start-ups may shake up business models and customer demands, it also inspires the old guard to put their full weight behind their digitalisation efforts. Mandel detailed that Commerzbank’s efforts, like integration with PayDirekt, and the board’s goal to completely digitise the customer experience. The conference ended with a reflection from Hufeld, who reminded the audience not to overlook all factors that go into deciding whether a technology is permitted, such as security, anti-money laundering and consumer protection.

As the German FinTech scene has grown substantially over the past year, BaFin-Tech 2016 clearly demonstrated that Germany’s top regulators take FinTech seriously and are invested in fostering innovation in Germany and Europe’s financial sector. The event also proved another advantage of the Financial Centre Frankfurt for young FinTech companies looking for a home. Frankfurt is not just a centre for finance in Europe but also a centre for regulation and supervision, home to the ECB, EIOPA in addition to BaFin.

You can find more information and the presentations from the event on the BaFin website.

On the Move: the Future of Finance

Top masters students from the region’s business schools were invited to the Frankfurt Finance Summit. Mariam Abdelhady, Master of Finance student at Frankfurt School of Finance & Management, reflects here on her impressions from the event.

On May 12th, 2016, I had the great opportunity to attend the 6th Frankfurt Finance Summit, which is organized by Frankfurt Main Finance (FMF) in collaboration with Frankfurt Institute for Risk Management and Regulation (FIRM). The annual summit, highlights the importance of Frankfurt as the center of financials stability and bank regulations in the Euro zone. It gathers Central bankers, regulators, representatives of the supervisory authorities, academics, financial politicians and practitioners together to discuss current financial issues from different perspectives. The focus of this year’s summit was digitalization and its impact on different players in the financial market. The discussions and speeches were divided into four parts:

Digitalization – The Dawning of FinTechs

The Summit started off by Dr. Lutz R. Raetting, Chairman of the Executive Committee of FMF, expressing his pleasure with sustaining the summit for the 6th year in a raw. Refereeing to the title of the Summit, he pointed out to the fact that we are all always “On The Move”, be it voluntarily or due to someone else pushing us to. As digitalization is the main focus of this year’s summit, he mentioned that the number of FinTech companies is increasing in the region and specifically in Frankfurt. The reason for this is the ideal conditions Frankfurt provides FinTechs with, in terms of the proximity to the regulator, as well as the best environment for the internationalization of their businesses.

In support of this view, Hessian Minister of Economics, Energy, Transport and Regional Development Tarek Al-Wazir highlighted the fact that Frankfurt will open its Fintech center in four months with the goal of improving the communication between start-ups, banks and regulators. This in turn will attract investors to Frankfurt and will position the city as an “innovative location for IT-driven start-ups in the financial sector”. Additionally, Al-Wazir stated that the current financial sector is undergoing fundamental changes mainly due to the economic and regulatory conditions and the ongoing digitalization, which explains the focus of the summit.

Examining the impact of FinTechs on the banking sector, Mr. Gottfried Leibbrandt, CEO of SWIFT, explained the concepts of Blockchain and Bitcoin and how they would impact the banking sector and SWIFT. Nevertheless, he believes that banks will make it through, just like they did in the 90s during the first wave of FinTech and the rise of online banking and electronic trading. The key for banks is to make use of those innovations to facilitate their work and not allow them to take over their work, whereas the main threat remains to be cyber security. On the other hand, Hauke Stars, Member of the Executive Board of the Deutsche Börse AG, believes that only those institutions that are able to adapt to the changing environment will survive. In accordance to this view, Roland Boekhout, Chairman of the Management Board of ING-DiBA AG, stated that cooperation with FinTechs in essential, because their technologies and services may be in the interest of their customers.

Redefining Banking – Regulatory and Economic Challenges

Another interesting topic discussed in the summit was the merger deal between Deutsche Börse and the London Stock Exchange. Mr. Carsten Kengeter, CEO of Deutsche Börse, explained the completed steps towards this merger, as well as the implications of this deal on the capital market and the benefits associated with it.

Furthermore, this panel discussed the potential implications of the capital market union on the banking sector, future regulations and the impact of what is believed by some to be BASEL 4, as well as the future of some financial institutions, giving the changing regulations and the rise of digitalization. Although past regulations have resulted in a more resilient banking sector, new ones are believed to make the conduct of some activities more difficult, hence hindering banks from realizing much of the profits they used to gain. Regarding the impact of digitalization and FinTechs on the banking sector, it is believed that they will change the business models of banks. Therefore, it is essential for the supervisory authorities to find the balance between supporting innovation and protecting customers and the financial system as a whole.

Tectonic shift – Where will finance move to?

Federal Finance Minister Wolfgang Schäuble’s speech focused on the proposed referendum on the Brexit and its impact on the future of finance in the EU. Although he advocates that Britain should remain in the EU, underlying its importance to the union, but should the referendum result in otherwise, the exit phase should immediately begin. He believes that Prime Minister David Cameron had negotiated a good deal and that no further concessions and renegotiations would be possible, in case of a majority votes for the exit. Hence he stated that “in means in, and out means out” with all the implications this might have. Additionally, Federal Finance Minister Schäuble highlighted the fact that in addition to the Single Supervisory Mechanism, there are still other areas in banking regulations, as well as fiscal budget, policies and security that will continue to improve in the future, with or without Britain.

Financial Inclusion

Discussing the importance of technology to the financial sector, Mr. Diwakar Gupta, Vice President of the Asian Development Bank, explained, using India as an example, that new technologies, like mobile banking, allows the large portion of the population living in rural areas to access financial services. Additionally, governments should also make use of such technologies, for example to make sure subsidies really reach the poor. Mr. Gupta believes that the biggest challenge for technology-based financial services is getting people to use it for the first time.

Overall, attending this summit was a great experience exposing us to the main topics that might affect the financial sector as a whole and its main players in the near future, with insights from top notch practitioners, as well as financial politicians and regulators of the field. Such unique experiences that Frankfurt School provides to its students, along with academic excellence is what differentiates it from other schools and universities.