The EFR calls for greater convergence and harmonisation of the EU regulatory framework. Colleges of supervisors offer the most realistic way forward in terms of achieving more efficient prudential oversight in the EU, the EFR argues.
The EFR calls for greater convergence and harmonisation of the EU regulatory framework. Colleges of supervisors offer the most realistic way forward in terms of achieving more efficient prudential oversight in the EU, the EFR argues in its letter to the de Larosière group.
For financial groups inside the EU, the supervisory model should be based on colleges in which all supervisors involved share relevant group-wide and local information. The college should be chaired by a lead supervisor who is the home supervisor of the parent company. In case of disagreements, the relevant Level 3 Committee should provide a mechanism for a solution.
EFR also argues that market-based solutions involving the private sector should have the primacy over public crises management measures when it comes to crises situations.
Furthermore, there is a need for appropriate and proportionate oversight and regulation of non-regulated systemically important institutions – including rating agencies – for both prudential and level playing field reasons, the EFR argues.
Full letter
© EFR - European Financial Services Round Table
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