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The independent High Level Group on financial supervision will hold its initial meeting on 12 November. The Group will make recommendations to the Commission on strengthening European supervisory arrangements covering all financial sectors, with the objective of establishing a more efficient, integrated and sustainable European system of supervision and also of reinforcing cooperation between European supervisors and their international counterparts.
Further meetings will take place as decided by the Group. The Group's secretariat will be provided by the Commission.
The Group will publish its initial recommendations in February 2009, ahead of the Spring European Council in March.
The Group's members are:
Mandate for the High Level Expert Group on EU financial supervision
The current financial crisis has highlighted the weaknesses in the EU's supervisory framework, which remains fragmented along national lines despite the substantial progress achieved in financial market integration and the increased importance of cross border entities. If financial integration is to be efficient in terms of safeguarding systemic stability as well as in delivering lower costs and increased competition, it is essential to accelerate the ongoing reform of supervision.
Supervisory reform has so far relied on an evolutionary approach, whereby the so-called Level 3 Committees in the Lamfalussy framework are expected to achieve significant convergence in supervisory practices and procedures across member states. While certain progress in convergence has been achieved, this progress has not allowed the EU to identify and/or deal with the causes of the current financial crisis. The current national-based organisation of EU supervision lacks a framework for delivering supervisory convergence and limits the scope for effective macro-prudential oversight based on a comprehensive view of developments in financial markets and institutions.
The Group is therefore requested to make proposals to strengthen European supervisory arrangements covering all financial sectors, with the objective to establish a more efficient, integrated and sustainable European system of supervision.
In particular the group should consider:
Ø how the supervision of European financial institutions and markets should best be organised to ensure the prudential soundness of institutions, the orderly functioning of markets and thereby the protection of depositors, policy-holders and investors;
Ø how to strengthen European cooperation on financial stability oversight, early warning mechanisms and crisis management, including the management of cross border and cross sectoral risks;
Ø how supervisors in the EU's competent authorities should cooperate with other major jurisdictions to help safeguard financial stability at the global level.
The Group will examine the allocation of tasks and responsibilities between the national and European levels.
The Group should present a report to the European Commission in view of the European Council of Spring 2009.
The Group will conduct hearings and organize a consultation as appropriate.