IP/08/1679
Brussels, 11 November 2008
High Level Expert Group on EU financial
supervision to hold first meeting on 12 November
The independent High Level Group on financial
supervision set up by Commission President José Manuel Barroso and chaired
by Jacques de Larosière 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. The full mandate for the Group is
attached.
President Barroso said: "I am delighted that Jacques de Larosière and
the group members have been able to make such a swift start to their important
work. There is an obvious mismatch between European and global financial markets
and supervision which remains largely national. There is wide agreement that we
need to bridge that gap but different ideas on how to go about it. So the
Group's role is to bring forward concrete proposals which will contribute to
greater financial stability and help maximise protection for depositors,
policy-holders and investors."
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, in time
to allow the Commission to take its work into account in preparing for
discussion by Heads of State and Government at the Spring European Council in
March. The Group does not expect to make any public statements before then.
The Group's members are:
- Jacques DE LAROSIERE, President
- Leszek BALCEROWICZ
- Otmar ISSING
- Rainer MASERA
- Callum Mc CARTHY
- Lars NYBERG
- José PEREZ FERNANDEZ
- Onno RUDING.
ANNEX
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:
- 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;
- 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;
- 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.
|