Financial supervision
Based on the de Larosière Report, which suggested that the EU financial regulation had to be enhanced in light of the recent financial crisis, in September 2009, the European Commission brought forward legislative proposals for a new financial supervision structure in the EU. The reform aimed at strengthening the regulation of financial institutions through the establishment of bodies looking at macro- and micro-prudential supervision at European level. After its adoption by the European Parliament and the Council, the new supervisory system became operational on 1 January 2011.
It established a European Systemic Risk Board (ESRB) as well as a European System of Financial Supervisors (ESFS) that include national supervisory authorities and three new European Supervisory Authorities (ESAs) that replaced the Level 3 Lamfalussy Committees (CEBS, CEIOPS and CESR): the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA), and European Securities and Markets Authority (ESMA).
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Background
On 27 May 2009, the European Commission adopted a Communication on Financial Supervision in Europe. The Communication proposed a set of reforms to the current architecture of financial services committees, with the creation of the ESRC and the ESFS, composed of new European Supervisory Authorities. The Commission invited all interested parties, including BIPAR, to submit their reactions on the Communication.
BIPAR response to the European Commission’s consultation on its Communication "European Financial Supervision" (July 2009) ►
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The de Larosière group on financial supervision in Europe, mandated by President Barroso, issued its report on 25 February 2009. It proposed that an enhanced European financial supervisory framework should be based on the two pillars of the European System of Financial Supervisors (ESFS) and the new European Systemic Risk Council (ESRC). On 4 March 2009, the European Commission published a Communication entitled “Driving European Recovery” in reaction to this report. On 10 March 2009, before bringing forward legislative proposals on the new supervisory framework, the Commission launched a public consultation on the proposals on financial supervision made in the “de Larosière’s report” and in its 4 March Communication.
BIPAR response to the European Commission’s consultation on its Communication “Driving European Recovery” (April 2009) ►
