16 April 2009

EFR – de Larosière report needs further clarifications

The EFR generally welcomes the de Larosière report but criticises that several proposals need further clarification. In particular, the composition of the ESRC and the early warning mechanism will have to be reconsidered.  

The EFR calls to enter into a more integrated and streamlined regulatory and supervisory framework. Responding to the Commission consultation on the de Larosière report, the EFR also calls on the EU to strive to avoid unilateral regulation or rescue packages and to preserve a level playing field. Also, there should be no room for national discretions, options and goldplating for financial regulation, EFR says.  

 

However, several proposals issued in the de Larosière report still need further clarification, in particular with regard to the composition of the European Systemic Risk Council. This body should take into account the specificities of each business model and risk within the financial industry, argues.

 

Furthermore, it should be made clear how the early warnings should be used and which authorities are expected to act upon them, EFR says.

 

Also, the European System of Financial Supervisors needs to be reconsidered, in particular the suggestion to merge the European banking and insurance authorities.

 

Finally, EFR warns that the extension of powers for host supervisors should not come at the expense of the consolidated approach towards supervision.

 

Full response

 

© EFR - European Financial Services Round Table