1. Update on the regulatory environment Anni Mykkanen Policy Advisor European Association of Corporate Treasurers (EACT)

2. Post-crisis Financial Reform Bank regulation Capital / Liquidity / Leverage Bank structure / ring- fencing Bank resolution / bail- in Market regulation Market structure Investor protection / market abuse

3. Post-crisis Financial Reform – intended effects and benefits Bank regulation Lowering the risk of bank failure Eliminating too big to fail and Isolating “risky” bank business activities from deposit-taking Avoiding the use of tax payer money in case of bank failure Market regulation Pushing trading to exchanges and central counterparties Reducing counterparty risk More stable and transparent markets

4. Post-crisis Financial Reform – issues for corporates Bank regulation Lower levels and tougher conditions of bank lending More complex bank structures Operational aspects Evaluating bank counterparty risk Pricing Banks more sensitive to how corporates impact their regulatory ratios Market regulation EMIR obligations: Reporting Risk mitigation Posting margin (for NFC+s) Continuous pressure towards more centrally-cleared derivatives

5. Post-Crisis Financial Reform – other concerns International consistencyGrowth of “Shadow Banking”Cumulative impact of regulation

6. Financial Reform – what’s cooking Risk Management – OTC derivatives: EMIR Review ESMA proposal to eliminate hedging exemption EBA work to impose additional capital charges for non-financial counterparties OTC derivatives transactions that have been exempted from Credit Valuation Adjustment (CVA) charges

7. Financial Reform – what’s cooking Funding: -Capital Markets Union: -Multi-year project by the Commission to encourage more market-based funding (bonds, equity, private placements, venture capital, crowdfunding etc) and to abolish obstacles to the free movement of capital in the EU -EU economy currently heavily dependent on bank funding

8. Financial Reform – what’s cooking Funding: -Capital Markets Union – possible topics of interest / concern to corporates: -Corporate bonds – market liquidity -Prospectus -Debt vs equity

9. Financial Reform – what’s cooking Cash management: Money Market Funds Regulation – Current discussions moving towards a model with three types of funds: CNAV: limits to allowed instruments and investor types (corporates not allowed to invest) Low Volatility NAV: corporate investment allowed VNAV

10. Financial Reform – what’s cooking Financial Transaction Tax -Would impact corporates directly and / or indirectly depending on the design -Currently political pressure to reach an agreement but at technical level many core issues remain open

11. Financial Reform – what’s cooking Payments – legislative updates: Payment Services Directive (PSD) 2: – Explicit exclusion of corporate payment factories from the scope of application – PSD will apply to all currencies and to one-leg transactions Card interchange fee Regulation: – Ban of surcharges

12. Financial Reform – what’s cooking Payments – other developments: Post-migration issues SCT and SDD – Extended remittance information – Harmonisation of customer-to-bank XML formats – Reminder: payers have the right to use non-domestic payment accounts! Instant payments E-invoicing Electronic mandates etc