Spanish Presidency compromise text on Omnibus I Directive giving powers to the new ESAs
14 April 2010
Changes to existing financial services Directives are necessary for the ESAs to work effectively. The most polemic issue on the debate has been the possible ESAs binding mediation powers; some Member States prefer the ESAs not having them. The Council and the EP are currently debating this Directive
The Omnibus I Directive gives powers to the new Authorities. The European System Financial Supervisors will take over all of the functions of the existing committees, and in addition have certain extra competences, including the following:
· Developing proposals for technical standards, respecting better regulation principles;
· Resolving cases of disagreement between national supervisors, where legislation requires them to co-operate or to agree;
· Contributing to ensuring consistent application of technical Community rules (including through peer reviews);
· The European Securities and Markets Authority will exercise direct supervisory powers for Credit Rating Agencies;
· A coordination role in emergency situations.
In order for the ESFS to work effectively, changes to existing financial services Directives are necessary, laying down the precise scope for them to exercise certain of the proposed new powers. The areas in which amendments are proposed fall broadly into the following categories:
· Definition of the appropriate areas in which the Authorities will be able to propose technical standards as an additional tool for supervisory convergence and with a view to developing a single rule book;
· Incorporation in an appropriate manner of the possibility for the Authorities to settle disagreements between national supervisors in a balanced way, in those areas where common decision making processes already exist in sectoral legislation; and
· General amendments which are necessary for the Directives to operate in the context of new authorities for example, renaming the level 3 committees to the new authorities and ensuring the appropriate gateways for the exchange of information are present.
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