Download - Proposals , Conclusions and Dialogues
Proposals, Conclusions and Dialogues
Piotr Madziar – European Commission
20 November 2009, XI European Banking Supervisors XBRL Workshop - Vienna
Topics
• European Commission proposal for supervisory reform
• Critics • Next steps?
XBRL driving forces
XBRLSimplification Crisis
Stoiberg De Larosiere
G20
EU Council EP
COM
MS
De Larosiere Reform
• Financial crisis driven• Position of national regulators?• Global aspect• Commission absolute priority.
European Parliament
Resolution on Lamfalussy follow-up: future structure of supervision (September 2008)
• Calls upon the L3 Committees to design common reporting standards
• Multi-purpose format such as XBRL• Throughout the EU• Calls upon the Commission to submit adequate legislative
proposals
De Larosiere proposal• Commission’s proposal of 23 September 2009• ESRB and ESFS = ECB + ESAs + national regulators+…• Banking: colaterals, capital, fund transfer reg,…• Insurance: insurance and reinsurance, conglomerates,
institutions, Solvency II, anti money laundering,…• Securities & Markets: transparency, markets in FI, market
abuse, prospectuses, hedge funds, CRA, take-over bids, settlements, financial collateral arrangements, ...
• Technical standards,… XBRL?• Links to international standard setters,… XBRL?
More powers for ESAs• Technical standards but criteria in Community legislation • Flow of information• Supervisory culture and supervisory practices• Last resort option in case of disagreement• Training programmes• Aggregate micro-prudential information from national
supervisors• Set-up a Central European Database. The information will be
available for the relevant authorities in colleges of supervisors and forwarded to the European Systemic Risk Council
• Technical arrangements with international organisations and administrations of third countries.
Proposed structure for Banking
EBA – European Banking AuthorityChairperson
Mgt BoardExecutive Director
ECA - European Court of Auditors
OLAF – l’Office européen de lutte anti-fraude
European Commission
€
Banking Stakeholder Group
Board of Supervisors
Appeal processes
EU Court of First Instance
Member State Member StateNSA NSA NSA
EU Court of Justice
Board of Appeal for 3 ESAs
EU Council - QMV
EBA QMV
ESFS
ESFS - EU System of Financial Supervisors
ESMA - European Securities and Markets Authority
EIOPA - European Insurance and Occupational Pension Authority
EBA - European Banking Authority
Joint Committee of European Supervisory Authorities
College of SupervisorsNSA
NSANSA – National Supervisory Authority
NSANSA
NSA
NSANSA
NSA
NSANSA
NSA
ESRB – EU Systemic Risk Board
ESRB – European Systemic Risk Board
ECB
ESFS – European System of Financial Supervision
Informatio
n exchange
3rd Countries & Int’lInform
ation exc
hange
Informatio
n exchange
Practicalities, Agenda
• Financial assistance 37- 70 M€ in years 2011-2016• 40% from the Community budget• London, Paris, Frankfurt• Status similar to EU Agency• 74-90 staff (2016)• EU Staff Regulation (independence, impartiality).
Financial Market-driven regulatory data reform
Common Reporting Framework
Regulated Financial Markets
Governments
All Markets?
Critics
• Serious problems
Critics
Stop!
R e a l a r g u m e n t sSovereignty
Treasury
Global dimension
Exclusion and Dominance
Sovereignty of MS:
CriticsR e a l a r g u m e n t s
• Host states allowed to take steps if weaknesses are identified - that can be abused for commercial or protectionist reasons
• ESAs empowered to override national regulators
• Changes give EU more powers. Emergency declared by the Commission without involvement of the Council. Unclear emergency procedure.
• MS should decide first what will ESAs do and how
CriticsR e a l a r g u m e n t s
• Not clear how global cohesion is addressed
• Need for allignment with G-20 and Basel.
• It would be very bad for EU and its financial centres If we forge ahead disregarding what US, Switzerland and others are doing
Global cohesion:
Fiscal responsibilities of MS:
CriticsR e a l a r g u m e n t s
• June’s ECOFIN mandate (shoulnd’t impinge on the fiscal responsibility of the MS) breached
• EU financial supervisory structure needs an EU fiscal arrangement
CriticsR e a l a r g u m e n t s
• QMV to recognize the size and importance of financial services relative to GDP
Exclusion and Dominance
• Any compromise would need to assure that host states receive all prudential information about entire group.
• Eurozone dominance in ESRB
• Bankers dominance in ESRB, disregarding the fact that the choice between security and price is a democratic trade-off decision taken by governments, for the citizens.
Options/ScenariosApproach Implications Effects
Yes we can “Political” arrangement despite all the odds
Fast, “big bang” type of approach
Now, with the big stakes and big appointments discussed
Yes but … Prolonged existence of the current L3 non-mandatory coordination
Prolonged existence of CAN DOs and CAN’T DOs
Until next financial crisis
Is the money spent wisely?
Substitutes: colleges? ECB role?
New revised Commission’s proposal?
Contacts
• DG Internal Market & Services website:http://ec.europa.eu/dgs/internal_market/index_en.htm
• Piotr Madziar
+32-(0)[email protected]