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The European Commission will come forward with formal proposals on the reform of the European supervisory structure by end May, and with concrete proposals in autumn. Speaking at the Horwarth Bastow Charleton Conference in Limerick Commissioner McCreevy, underlined that in the past member states’ home supervisors resisted “ceding anything with an eye to protecting their own empires.”
“The status quo is not an option”, McCreevy outlined. “The existing set up in Europe – the Committees of Supervisors - clearly lack teeth.”
Reforms to come include an overhaul of the Basel II Accord, the Commissioner outlined. In the short term, the capital requirements for banks with regard to trading book activities and complex securitisations will be further stengthend.
A new revision to the capital requirements framework will be proposed this summer, he said.
To get management and pay incentives right “we are going to issue a new Recommendation on remuneration in financial services companies”, McCreevy said and also announced the the Commission will conduct a review on sanctions and on the Market Abuse Directive this autumn.