EP plenary: new financial market supervision system signed into law
24 November 2010
The President of the European Parliament, Jerzy Buzek, said that the legislative package is one of the key cornerstones in rebuilding economic growth in the EU. The new and strengthened financial supervisory authorities will help ensure that a deep financial crisis in the future is avoided.
Jerzy Buzek and Belgium's State Secretary for European Affairs, Olivier Chastel, formally signed into law the financial supervision package which will establish new oversee authorities to the banks' operations, securities markets and insurance companies, as well as monitoring the build up of risk in the economic system as a whole.
The new watchdogs are set to be operational by 2011 and will have tough new powers to settle disputes among national financial supervisors, to ban risky financial products and activities, and to directly supervise credit rating agencies. If national supervisors fail to act, then the authorities may also impose decisions directly on financial institutions, such as banks, so as to remedy breaches of EU law.
© European Parliament
