Revision of EU supervisory framework by:

September

2009

Commission

Legal Proposals

by Commission

1. adopting a general approach on the a macro-prudential framework (creation of the ESRB)

October

2009

Council

 

2. adopting a general approach on a micro-prudential framework (creation of ESFS)

European Banking Authority EBA

European Securities and Markets Authority ESMA

European Insurance and Occupational Pensions Authority EIOPA

 

December

2009

Council conclusions Dec

 

Establishment of colleges of supervisors for large cross-border financial groups - Principles

                                                       CEBS’ report

As soon as possible and at the latest end 2009

CEBS-CEIOPS

Ongoing for CEBS, fulfilled for CEIOPS

Operational guidelines for the colleges of supervisors

End 2009

CEBS-CEIOPS

Ongoing: CEBS guidelines to be published end 2009; fulfilled for CEIOPS

Establishment of CEBS and CEIOPS risk assessment methodology within colleges

End 2009

CEBS-CEIOPS

Ongoing: both CEBS and CEIOPS respectively working on a common methodology

Explore ways to strengthen national application of guidelines of EU Committees of supervisors

 

EU Committees of supervisors

Completed by CEBS and CESR. Ongoing in CEIOPS (to be finalised by end 2009)

Study on sanctioning powers

CEIOPS Report

Autumn 2009

Commission, based on input from EU supervisory Committees

Postponed Input by the EU Committees of Supervisors has been delivered.

Report on supervisory Cooperation and information exchange

Autumn 2009

Commission

Ongoing (will be released

after finalisation of the Supervision package)

Report on delegation of tasks and responsibilities

Autumn 2009

Commission

Input by the EU Committees of Supervisors has been delivered.

Financial institutions provide full risk disclosure in reporting and disclosure of all losses on an ongoing basis

Ongoing

Financial institutions, Commission with input from EU Committees of Supervisors

The CEBS Reports on Financial Statements respectively on Pillar 3 disclosures were published in June 2009; follow-up work is ongoing CEIOPS to develop Level 3 guidance on reporting and disclosure (follow up to Level 2 advice in 2009)

Enable supervisory authorities to take account of the EU dimension

Mid-2009

Member States, taking into account recent legislation on banking and insurance and securities

Ongoing

End-2009

FSC to follow up on implementation

Ongoing

Action

Timetable

Actors

State of progress

Bank resolution framework (including early intervention tools) of the EU

June 2009

Commission Communication  -

(Poss. Follow up: Consultation and legislative proposals in 2010)

Input from the EFC -

Ongoing

Scheduled for October 2009

ECOFIN December 2009

Resolution plans for financial institutions (‘living wills’), ensuring consistency and coordination in implementation.

2010

Commission, Council with input from Level 3 Committees /ESAs

 

Review the adequacy of existing guarantee schemes in banking, securities and insurance and make appropriate legislative proposals

CEIOPS recommendations

July 2009- mid 2010

Commission Consultation in July, possible legislative proposal in early 2010

Ongoing

Pre-consultation

Assessment of the need for a pan-EU guarantee scheme

2010

FSC, with inputs from Commission, BSC, CEBS, CEIOPS and CESR/ESAs

 

Creation of a comprehensive EU-wide framework for closer policy coordination on financial stability, including:

2010

EFC

 

regular transmission of risk assessments,

2010

ESRB

 

carrying out EU-wide stress tests in cooperation with the Commission and the ESAs as appropriate;

2010

ESRB

 

further enhancing policy coordination between relevant authorities in the EU, (CBSGs or the ECOFIN/EFC for the EU as a whole), taking into account as appropriate, the links to the ESRB and ESFS , by developing practical arrangements and carrying out further work on burden sharing

2010

End 2009

EFC based on a reflection paper from the EFC AHWG

 

Implementation of the 2008 MoU

 

2009

Supervisory authorities, Ministries, Central Banks

Ongoing

FSC to report on implementation to the November EFC (in particular on the establishment of CBSGs)

(Poss) revision of the need to revise the 2008 MoU beyond the adjustments for new developments

2010

EFC

 

Consider the need and possibility of introducing a number of changes in EU legislation to enhance the functioning of the EU single Passport

2009

Commission

Poss. Legislative changes to be discussed in EBC on 23 October

Replacement of IAS 39 (covering level playing field

issue following the FASB's

decision of April 2009)

 

 

 

 

IASB (Commission

and EU Committees of

Supervisors closely

monitoring progress)

Ongoing

o Exposure draft on

measurement (phase I)

July 2009

(standard in October 2009)

 

 

o Exposure drafts on loan loss

accounting (phases II and III)

Oct. (phase II)

and Dec. (phase III) 2009

(standards

H1/2010)

 

 

 Enhance and reform governance of accounting standard bodies

2009

 

 

Commission

Phase II of

constitutional

review ongoing

Refinement of the accounting rules in respect of through the cycle provisioning

Oct.2009

(standards

H1/2010)

IASB (Commission

closely monitoring

progress)

Ongoing

 Enhance liquidity risk assessment and

management by banks

 

2009

 

CEBS

Guidance on liquidity will be published in

2009.

CEBS

Consultation ongoing with

deadline 31 Oct.

Coordinated with Basel Committee process

 

2010

BASEL/ COM to propose global liquidity standards

 

Removal of national options and Discretions

October 2009

Commission

Proposal following

CEBS advice.

Ongoing, CEBS

2010

Commission

Basel Committee

process, CEBS

Follow-up to the report of the EFC-WG on Pro-cyclicality and the July Ecofin Conclusions Possible measures to address pro-cyclicality of capital

September

EFC with input from

Commission and FSC discussion

Ongoing; (the Commission proposal in July addressed one of the perceived drivers of procyclicality: remuneration policies)

o Dynamic provisioning

October 2009

Commission

proposal

Ongoing (linked to Basel process), CEBS

o Proc-cyclicality of CRD

End 2009

Commission report

Expected in early 2010

Credit rating agencies to adopt standards for compliance with EU regulation based on the IOSCO code of conduct

 

CESR- CEBS (CRD)

Ongoing

o EU regulation

Autumn 2009

based on IOSCO Works

 

Registration and oversight of CRAs

2010

 

 

Assess risk management in non-bank investors, particularly for illiquid assets

Autumn 2009

Commission,

CESR and

industry

Expected level II

 

Provisions of the UCITS directive

Any further initiative as a follow-up to the Madoff case

 

 

CESR draft advice under public

consultation

 

 

 

 

Increasing the safety for "over the counter" derivatives markets , by  :- the clearing of standardized OTC derivative contracts through central

counterparties and, if not, higher capital requirements ;

- the reporting of non-standardized derivative contracts to trade repositories

Autumn/end 2009 (political

orientations)/ 2010 (potential

legislation)

Commission to examine possible future solutions.

 

 

 

CESR report on trade repository/“warehouse” starting with consultation

Ongoing

Improve transparency in use of

derivatives

June 2009 + MIFID review

Commission presented a report

Ongoing

Extend the scope of regulation to all to date still unregulated instruments, institutions, markets in respect of systemic institutions

Overview By September 2009 and Mifid review in 2010

EFC, FSC, Commission

Ongoing. Initiated for

hedge funds managers, CRAs, OTC derivatives.

Member States' common format to disclose national transposition of EU legislation

 

MS and EU

Committees of

Supervisors

CEBS completed

CESR-CEIOPS ongoing

Autumn 2009

Commission

proposal

Ongoing

Cross sectoral consistency checks of terminology of EU legislation

September 2009

Commission

Ongoing

Harmonization of reporting formats for financial institutions

2012

EU Committees

of Supervisors,

Commission, FSC

Ongoing

Autumn 2009

Commission

proposal

Ongoing

Ensure responsible lending and borrowing

Autumn 2009

Commission

Public consultation launched in June 2009 with a deadline of 31 August, public hearing

took place on 3 September 2009. Analysis of the results of the consultation and hearing ongoing.

Promote best practices for pre-foreclosures arrangements

October 2009

Commission

Responses to questionnaires to national supervisory

authorities on pre-foreclosure

practices are being analysed by

the Commission

Empowering retail clients

Early 2010

Council, Commission

 

Packaged Retail Investment Products (PRIPs)

End 2009

Commission

Orientation paper subject to public consultation. EC communication

 

 

EU Committees of Supervisors

Input to the Commission from

CESR, CEIOPS and CEBS on issues relating to “scope”,

product disclosure and selling practices by end Oct 2009.

Strengthen financial services consumer inputs to EU policy

End 2009

Commission

Internal deliberations on the best approach to strengthen

Simplify and harmonize national substantive law on

securities holding and

transactions

Early 2010

Commission proposal

Ongoing

Short Selling

End 2009

CESR

Complete the Single Euro Payment area

Mid-2009

Commission

Commission Communication (SEPA roadmap) adopted 10

September 2009

Link capital requirements of banks to remuneration

policies and give enforcement powers to supervisors on

remuneration issues

End 2009

Commission

 

 

Inputs from CEBS

Proposal tabled in July

(CRD III)

 

Examine additional measures on remuneration and risk

management in relation to non-banking institutions

2010

Commission Report

Ongoing,

(also input from Basel Committee). CEBS work on internal governance and risk management. CEIOPS work on Level 3 guidance on governance as a follow up on Level 2 advice to EC in 2009.

Implement the agreed strategy in the context of the G-20 on non-cooperative jurisdictions based on:

Various dates.

(the FSB to report to G20 on criteria and compliance against regulatory standards by November 2009)

Commission and Member States in the context of the FSB

Ongoing

- Criteria for identifying non cooperative jurisdictions

 

 

 

- Developing a process for evaluating compliance

 

 

 

- Developing a toolbox of dissuasive measures to promote adherence to international prudential standards