The House of Lords EU Committee has welcomed moves to improve the regulation and to strengthen the supervision of financial institutions and markets in the EU, but criticized the EC on for their failure to follow their own Better Regulation Principles.
The House of Lords EU Committee has welcomed moves to improve the regulation and to strengthen the supervision of financial institutions and markets in the EU. But it criticized the European Commission for their failure to follow their own Better Regulation Principles in its latest proposals to regulate hedge funds.
The Committee's Report, The Future of EU Financial Regulation and Supervision also warned that there are some real difficulties with Commission proposals for reform of EU supervisory bodies. In the Report the following points were remarked :
- The Committee was concerned that the UK Government had not set out their own thinking to influence the debate on these reforms.
- The Committee welcomed steps agreed in recent months at EU level to improve the regulation of financial services by revising the capital requirements of institutions, increasing deposit guarantees across the EU and regulating credit rating agencies.
- The Committee was critical of the speed and manner with which the Commission has brought forward their latest proposals on regulating alternative fund managers.
- The Committee supported moves to set up a macro-prudential supervision body for financial services and markets in the EU.
- The Committee agreed that the de Larosière Report made a powerful case for reform of micro-prudential supervision of financial services in the single market.
Lord Woolmer, who chaired the Committee for this inquiry, said: "The Government are right to enter discussions on EU efforts to strengthen EU-wide macro- and micro level supervision over the financial sector. Globally, every effort must be made to avoid the systemic failures we saw during the financial crisis - and within Europe the inconsistencies and weakness in the single market need ironing out. London and the UK more generally have a great deal to gain from this.
But there are concerns. Financial services are a key, strategic industry for the UK. London operates in a global market place as well as in Europe. Many other EU member states do not share this perspective. The UK government must ensure these national interests are properly reflected in new regulations or in structural reforms.”
Graham Bishop gave evidence at this enquiry.
Documents associated with this article
|
|
106i.pdf
|
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article