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The Commission consults on its Communication on Financial Supervision in
The document sets out concrete, timetabled steps with a view to set the new architecture up and running during 2010.
The financial supervision package involves two key elements.
- a European Systemic Risk Council (ESRC) which should monitor and assess risks to the stability of the financial system as a whole ("macro-prudential supervision"). The ESRC will provide early warning of systemic risks that may be building up and, where necessary, recommendations for action to deal with these risks.
- a European System of Financial Supervisors (ESFS) for the supervision of individual financial institutions ("micro-prudential supervision"), consisting of a robust network of national financial supervisors working in tandem with new European Supervisory Authorities, created by the transformation of existing Committees for the banking securities and insurance and occupational pensions sectors.
The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities Authority (ESA) will replace the current EU Committees of Supervisors (CEBS, CEIOPS and CESR).
The new Authorities would be working in a network with national supervisors which will develop common supervisory approaches to the supervision of all financial firms and contributes to the development of a single set of harmonised rules.
The Communication proposes a co-ordinating or steering group among the three Authorities. This over arching committee would have as its function ensuring consistent supervisory approaches, strengthening co-operation as well as addressing cross sectoral challenges including financial conglomerates.
Decisions under the proposed 'dispute settlement' mechanism should not directly impinge on the fiscal responsibilities of the Member States. It would relate to issues concerning the organisation of supervision, the technical implementation of prudential rules and issues like balanced
A full-review should take place no later than three years after the entry into force and no later than 2013.
Deadline for consultation is
Commissioner’s introductory remarks
Summary of the impact assessment