19 May 2005

FBE response on the establishment of a mediation mechanism

The European Banking Federation (FBE) published its response on the call for evidence on the establishment of a mediation mechanism. FBE states that such a mechanism should not interfere with the right of the entities involved to seek recourse to legal remedies and can only be considered in a non binding manner. Furthermore, it should be optional, not mandatory, for CESR members to refer a case to the CESR mediation mechanism before initiating legal action at EU level.

According to FBE it is critical for any mediation mechanism to be designed with due respect for the competence of the European Commission at Level 4 and to avoid interfering with the Commission’s own enforcement procedures and competences.

Finally, FBE does not think that a ‘more automatic’ mediation as referred to in the Himalaya Paper as a medium-term proposal is either necessary or likely to be useful as it would exacerbate the risks posed by the mechanism, such as the potential of undermining EU law and interfering with the Commission’s role. Once the system is in place, it can be subject to a regular review to ensure that it functions as designed and to identify any changes that could make it more useful and efficient.

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© FBE