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The current situation should encourage the EU to further develop and enhance the consistency of the supervisory framework at its own level, Michel Prada, Chairman of the French AMF said at the Paris Europlace Financial Forum. Prada called to strengthen 3L3 Committees “to achieve genuine convergence in regulatory practices and enhanced supervisory cooperation.”
The current framework is running into serious limitations and is facing a fundamental challenge that has a major bearing on the credibility of European financial market supervision, Prada said.
CESR’s consensus-based decision-making approach has become more cumbersome because of its increased membership, particularly given the differences in the sizes and structures of domestic markets, and in the powers and the organisational make-up of the various regulators, Prada criticizes.
“I believe that we should take it a step further on a more ambitious route – one that would truly be creating the framework needed to address the challenges facing financial-market regulation in Europe”, he said. “CESR should become the head of a network of market regulators.”