Financial Services Supervision and Committee Architecture

Overview

Currently, three committees exist at the EU level in the financial services sector, with advisory powers, the Committee of European Banking Supervisors (CEBS), the Committee of European Insurance and Occupational Pensions Committee (CEIOPS) and the Committee of European Securities Regulators (CESR). These are often known as the “Lamfalussy level 3 Committees” because of the role which they play in the EU framework for financial services legislation, created following a report by a group chaired by Alexandre Lamfalussy.

In January 2009 the Commission took action to strengthen the powers of these committees and proposed a financial instrument giving them a secure financial basis for their work.

In February 2009 a report by a high-level group chaired by J. de Larosière recommended transforming the three Committees into European Authorities, with commensurately increased powers to, inter alia:

• co-ordinate the work of national supervisors,
• arbitrate between national supervisors in supervisory colleges in cases of disagreement on supervisory issues regarding a cross-border financial institution;
• take steps to harmonise national regulatory rules and move towards a common European rulebook;
• directly supervise certain pan-European institutions which are regulated at EU level, such as Credit Rating Agencies.

On 27 May 2009 the Commission adopted a Communication describing its plans for putting into effect the recommendations of the de Larosière report. This was followed by legislative proposals in September 2009.

Financial supervision: New legislative proposals

Additional legislative proposals (October 2009)

• Press release (26.10.2009)
• Proposal for an "Omnibus" Directive amending various financial services sectoral Directives to specify the scope for exercise of certain of the powers of the European Supervisory Authorities to be created by the legislative proposals of September 2009

Legislative package (September 2009)

• Press release (23.09.2009)
• Frequently asked questions 1(MEMO/09/404)
• Frequently asked questions 2(MEMO/09/405)
   
• Legislative proposals:
  • Proposal for a regulation on Community macro prudential oversight of the financial system and establishing a European Systemic Risk Board (ESRB)
  • Proposal for a decision entrusting the European Central Bank with specific tasks concerning the functioning of the European Systemic Risk Board
  • Proposal for a regulation establishing a European Banking Authority (EBA)
  • Proposal for a regulation establishing a European Insurance and Occupational Pensions Authority (EIOPA)
  • Proposal for a regulation establishing a European Securities and Markets Authority (ESMA)

• Commission staff working document
   
• Impact assessment
  • Executive summary
  • Full text

Commission Communication of May 2009

The European Commission has adopted a Communication on Financial Supervision in Europe. The Communication proposes a set of ambitious reforms to the current architecture of financial services committees, with the creation of a new European System of Financial Supervisors (ESFS), composed of new European Supervisory Authorities, and a European Systemic Risk Council (ESRC).

• Press release (27.05.2009)
• Frequently asked questions
• Text of the communication

• Impact assessment
  • Executive summary
  • Full text
• Public consultation

De Larosière Report and Commission Communication of March 2009

In October 2008 the Commission mandated a High Level Group chaired by Jacques de Larosière to give advice on the future of European financial regulation and supervision. The Group presented its report on 25 February 2009 and its recommendations were endorsed by the Commission in its Communication to the Spring European Council of March 2009.

• Report of the de Larosière group
• The Commission’s Communication “Driving European Recovery” of 4 March
  • Text of the communication
  • Annex  

Consultation on financial markets supervision

In March 2009 the European Commission launched a consultation on the improvement of supervision for the financial services sector. The deadline for submissions was 10 April 2009.

• Press release (10.03.2009)
• Consultation

High Level Conference “Towards a new supervisory architecture in Europe” – 7 May 2009 – Bruxelles

As part of the consultation process on the future of EU financial supervision, the Commission held a High Level Conference entitled “Towards a new supervisory architecture in Europe” on the 7th of May 2009.

The Conference was designed to enable a wide and open discussion on the future reform of the European supervisory framework and, as a result, to provide the Commission with valuable suggestions to improve the quality and comprehensiveness of its policy proposals.

• Programme
• Welcome Speech – Mr J. Holmquist, Director General, DG Internal Market and Services
• Keynote Speech – Commissioner C. McCreevy
• Intervention – Mrs. A. Obolensky – EBF
• Intervention – Mr. F. Zunzunegui – Fin-Use
• Intervention – Mr. O. Roethig – UNI-Europa Finance
• Intervention of the Presidency – Mr J. Król
• Intervention – Mrs M. Koller – CEA
• Intervention – Mr. R. Maisera – de Larosière Group
• Intervention – Mr. K.- P. Schackmann-Fallis – ESBG
• Intervention – Mr. M. Knight – Deutsche Bank
• Intervention – Mr. G. Carosio – Banca d’Italia
• Intervention – Mr. E. Wymeersch – CESR
• Intervention – Mr. P. Brady – Joint Committee on Financial Conglomerates
• Intervention – Mr. J. Taylor – LIBA
• Intervention – Mr. M. Grande – ECB
• Intervention of the European Parliament - Mrs Pervenche Berès, Chair of the Committee on Economic and Monetary Affairs
• Closing remarks of Mr. M. Buti – Director General of DG Economic and Financial Affairs
  (on behalf of Commissioner J. Almunia)

Review of the Lamfalussy process

• The Commission put forward a proposal to finance specific activities in the field of financial services, financial reporting and auditing

  The Commission is proposing the establishment of a Community programme, providing direct funding from the Community budget to the three EU Committees of Supervisors (i.e. the Committee of European Securities Regulators (CESR), the Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS)) and to key international and European bodies involved in the standard setting process for financial reporting and auditing. These bodies are the International Accounting Standards Committee Foundation (IASCF), the European Financial Reporting Advisory Group (EFRAG) and the Public Interest Oversight Body (PIOB) over the period 2010–2013. The proposal will now enter in the co-decision procedure with a view to adoption by the European Parliament and the Council.
   

  • Press release of 26.01.2009 
  • Commission Proposal COM(2009)14 final
  • Commission Staff Working Document SEC(2009)54
     

• The Commission adopts new framework for supervisory committees in securities, banking and insurance sectors

  The Commission has revised the Decisions establishing the EU Committees of Supervisors (CESR, CEBS and CEIOPS), establishing a clearer framework for the activities of the Committees and reinforcing current financial stability arrangements. The new Decisions contain a non-exhaustive list of tasks that the Committees are expected to perform and enhance the role of the Committees as regards the safeguarding of financial stability. In order to improve the decision-making process of the Committees, the Decisions introduce qualified majority voting when consensus cannot be reached.
   

  • Press release of 26.01.2009
  • Commission Decision C(2009)176 establishing the Committee of European Securities Regulators
  • Commission Decision C(2009)177 establishing the Committee of European Banking Supervisors
  • Commission Decision C(2009)178 establishing the Committee of European Insurance and Occupational Pensions Supervisors
     

• Public consultation on review of Decisions establishing the Committees of Supervisors

  The European Commission is consulting the public on possible amendments to Commission Decisions establishing the Committee of European Securities Regulators (CESR), the Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS). The deadline for comments was 18 July 2008.
   

  • Press release of 23.05.2008
  • Consultation
  • Summary of the responses
  • Responses received
     

• The Commission has published a Communication on the Review of the Lamfalussy process.

  • Press release of 20.11.2007
  • Commission Communication COM/2007/0727 final

Conference on Supervision, 26.06.2007

Financial supervision: On 26 June 2007, Commission hosted a conference on “Challenges for EU supervisory arrangements in an increasingly global financial environment”

The conference provided key stakeholders with an opportunity to discuss current EU initiatives in financial services, and to consider ways to improve the efficiency of the present supervision system while ensuring that it remains sufficiently robust from a financial stability perspective.

Further information:

• Speech by Commissioner McCreevy
• Programme of the Conference
• Initiatives currently underway

Inter-institutional Monitoring Group (IIMG)

• Inter-institutional Monitoring Group publishes its final report.

  • Press release of 15.10.2007
  • Final report
  • Comments of respondents

• Inter-institutional Monitoring Group publishes its second interim report.

  • Press release of 30.01.2007
  • Second interim report

  The Group welcomes public comments on its second interim report. Responses should be sent by 26 March 2007 to:

  IIMG-2005-2007@ec.europa.eu

• Inter-institutional Monitoring Group publishes its first interim report.

  • Press release of 22.03.2006
  • The first interim report

• Third meeting of the Inter-institutional Monitoring Group held on 20th December 2005.

  The Group consults with stakeholders who are closely involved in the Lamfalussy process in order to establish a sound basis for its first interim report.

  At its third meeting the Group approved a questionnaire that has been sent to industry associations and federations at European level. All interested parties are also very welcomed to respond. Responses should be sent by 31 January 2006 to:

  IIMG-2005-2007@ec.europa.eu

  • Questionnaire 
  • Press release of 12.01.2006

• Second meeting of the Inter-institutional Monitoring Group held on 18^th November 2005.

  • Press release of 06.12.2005

• First meeting of the Inter-institutional Monitoring Group

  The Inter-institutional Monitoring Group met for the first time on 15th September 2005. The launch of the Group was highlighted by Inauguration speeches, given by Ms Pervenche Berès, Chairwoman of the Committee on Economic and Monetary Affairs in the European Parliament (ECON), Mr. Peter Curwen, Economic and Financial Counsellor, UK Permanent Representation, and Mr. Charlie McCreevy, Member of the European Commission.

  • Inauguration speech Ms Pervenche Berès
  • Inauguration speech Mr. Charlie McCreevy
  • Press release of 26.09.2005

• The Inter-institutional Monitoring Group for financial services has been re-established in order to cover the extended Lamfalussy process.

  • Press release of 25.07.2005

Financial Services Committees

• Directive 2005/1/EC of the European Parliament and of the Council of 9 March 2005 establishing a new organisational structure for financial services committees
• Commission presents measures to improve regulation of banking, insurance and investment funds (6.11.2003)
  • Press release – Presentation
  • Frequently asked questions
  • Proposal for a Directive in order to establish a new financial services committee organisational structure
• Commission Decision 2004/5/EC of 5.11.2003 establishing the Committee of European Banking Supervisors
• Commission Decision 2004/6/EC of 5.11.2003 establishing the Committee of European Insurance and Occupational Pensions Supervisors
• Commission Decision 2004/7/EC of 5.11.2003 establishing the Committee of European Securities Regulators
• Commission Decision 2004/8/EC of 5.11.2003 establishing the European Securities Committee
• Commission Decision 2004/9/EC of 5.11.2003 establishing the European Insurance and Occupational Pensions Committee
• Commission Decision 2004/10/EC of 5.11.2003 establishing the European Banking Committee