EU to step up financial markets supervision
In view of the crisis hitting the financial markets, the European Commission wants to step up its supervision over banks, financial operators and insurance companies in the 27 EU member states. Adopting a set of decisions to strengthen the supervisory...
In view of the crisis hitting the financial markets, the European Commission wants to step up its supervision over banks, financial operators and insurance companies in the 27 EU member states.
Adopting a set of decisions to strengthen the supervisory framework and to improve supervisory cooperation and convergence between member states, the European Commission is proposing that the three current committees that supervise the securities, banking and insurance sectors will benefit from a clearer operational framework and more efficient decision-making process.
In addition, the EU executive is proposing that these committees as well as key bodies involved in the standard setting process for financial reporting and auditing at both EU and international level should be provided with financial support from the EU budget so that they can achieve their objectives as rapidly and efficiently as possible.
The Commission is proposing a budget of €36.2 million to be used for this purpose between 2010 and 2013. This has yet to be endorsed by the European Parliament and the member states.
The committees affected will be the Committee of European Securities Regulators, the Committee of Banking Supervisors, and the Committee of European Insurance and Occupational Pensions Supervisors. Malta is represented in these committees though officials from the Central Bank and the Malta Financial Services Authority.
The new proposals contain a non-exhaustive list of tasks that the committees are expected to perform and to enhance the role of the committees as regards the safeguarding of financial stability.
In order to improve the decisionmaking process of the committees, the Commission's proposals introduce qualified majority voting when consensus cannot be reached. This will mean that member states cannot unilaterally block a decision as it is the case so far. Members who do not follow measures adopted by the Committee will have to be prepared to present the reasons for this choice.
At the same time, the Commission is also proposing the establishment of a community programme, providing direct funding from the community budget to the three EU committees and other key international bodies such as the International Accounting Standards Committee Foundation and the European Financial Reporting Advisory Group.
According to the Commission, stable, diversified, sound and adequate funding of these bodies will enable them to accomplish their mission in an independent and efficient manner.
European Internal Market Commissioner Charlie McCreevy said that the financial crisis has demonstrated the need to further strengthen EU supervisory arrangements.
"An essential move to this direction is to reinforce the role of key bodies in these fields, at both European and international level, and to provide them with financial support," he said.
Mr McCreevy said that additional reforms may be needed in relation to the EU supervisory framework, in the light of the forthcoming recommendations of a High Level Expert Group set up by the EU.
Adopting a set of decisions to strengthen the supervisory framework and to improve supervisory cooperation and convergence between member states, the European Commission is proposing that the three current committees that supervise the securities, banking and insurance sectors will benefit from a clearer operational framework and more efficient decision-making process.
In addition, the EU executive is proposing that these committees as well as key bodies involved in the standard setting process for financial reporting and auditing at both EU and international level should be provided with financial support from the EU budget so that they can achieve their objectives as rapidly and efficiently as possible.
The Commission is proposing a budget of €36.2 million to be used for this purpose between 2010 and 2013. This has yet to be endorsed by the European Parliament and the member states.
The committees affected will be the Committee of European Securities Regulators, the Committee of Banking Supervisors, and the Committee of European Insurance and Occupational Pensions Supervisors. Malta is represented in these committees though officials from the Central Bank and the Malta Financial Services Authority.
The new proposals contain a non-exhaustive list of tasks that the committees are expected to perform and to enhance the role of the committees as regards the safeguarding of financial stability.
In order to improve the decisionmaking process of the committees, the Commission's proposals introduce qualified majority voting when consensus cannot be reached. This will mean that member states cannot unilaterally block a decision as it is the case so far. Members who do not follow measures adopted by the Committee will have to be prepared to present the reasons for this choice.
At the same time, the Commission is also proposing the establishment of a community programme, providing direct funding from the community budget to the three EU committees and other key international bodies such as the International Accounting Standards Committee Foundation and the European Financial Reporting Advisory Group.
According to the Commission, stable, diversified, sound and adequate funding of these bodies will enable them to accomplish their mission in an independent and efficient manner.
European Internal Market Commissioner Charlie McCreevy said that the financial crisis has demonstrated the need to further strengthen EU supervisory arrangements.
"An essential move to this direction is to reinforce the role of key bodies in these fields, at both European and international level, and to provide them with financial support," he said.
Mr McCreevy said that additional reforms may be needed in relation to the EU supervisory framework, in the light of the forthcoming recommendations of a High Level Expert Group set up by the EU.