Consultation of Financial Industry Federations
DG Markt’s services met with EU-federations on 30 October 2002 to discuss the issue of
streamlining reporting requirements for financial institutions.
Summary of the views: The Federations noted the high quality of work of the Forum Group and supported the recommendations in the Findings Paper. They agreed on the need to streamline reporting. However, more in depth studies would be necessary before proposing concrete actions in this complex and interrelated area.
Federations supported the Lamfallussy process and considered the committees as potential fora for addressing the issue of reporting rather than harmonisation by way of legislation. Co-ordination was seen as crucial. In particular the Level 3 Committees should start examining the reporting areas that could be streamlined/co-ordinated. A formal mandate in the area of reporting for the Level 3 Committees should be envisaged (as a result of legislation or of a formal request). Transparency and formal consultation with market participants would be necessary.
Federations agreed that convergence of approaches, in particular in the area of common definitions and applications, is vital. Single definitions/classifications for the implementation of rules and requirements should be established at the EU-level and where possible, at the international level.
Federations clearly indicated that sectoral differences between financial markets should be respected, but that common issues need common solutions.
Federations advocated an approach that takes into account the diversity of institutions (reporting based on risk profiles and use of internal models).
Federations supported the concept of an enhanced role for a co-ordinator/leadsupervisor but were not in favour of a centralised EU supervisory authority.
Federations underlined the importance of using accounting rules as a basis for reporting. The International Accounting Standards (IAS) should as a result be the starting point for any streamlining process in the prudential field. All companies should be associated and not only listed companies.
Federations suggested that reporting requirements and their changes should regularly be monitored from a consistency point of view. A “patch-work” regulation should be avoided. The consequences of new pieces of legislation on existing rules should be addressed in a consistent way. A global view and top-down approach would be needed, focussing on the supervisory objectives.
© European Commission
Hover over the blue highlighted
text to view the acronym meaning
over these icons for more information
No Comments for this Article