The EU Council published its compromise agreement on proposals to reform the bloc’s financial supervision system, which crucially did not include Commission suggestions that had worried European occupational pension funds.
The Council’s position would limit the extension of powers put forward by the Commission proposal, which was presented in September 2017. For example, the Commission had proposed the introduction of industry contributions to fund the EU’s finance watchdogs, but this did not feature in the Council’s proposal.
A final version of the supervision reforms must be agreed between the Council, the Commission and the European Parliament, all of which have put forward their own version of the initial text.
The Commission had also called for the establishment of an executive board with permanent members, but this also failed to make it into the Council’s proposal.
In addition, the Council scrapped from its position a provision for the European Insurance and Occupational Pensions Authority (EIOPA) – one of the three European financial supervisory agencies (ESAs) – to be allowed to disclose how individual occupational pension funds or insurers fare under sector stress tests.
In a statement, the Council said its general approach ensured a “key role” for national regulators within the ESAs’ governance structure, adding that “no decision should be taken against the will of a majority of national supervisors”.
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