The Chartered Insurance Institute is calling for a new regulatory committee to be set up to coordinate the UK regulators’ engagement with Europe.
In the EU, the European Supervisory Authorities are divided by sectors through the European Banking Authority, the European Securities and Markets Authority and the European Insurance and Occupation Pensions Authority.
The draft Financial Services Bill proposes splitting the FSA into the Prudential Regulation Authority and the Financial Conduct Authority.
The PRA will hold the voting seat at the EBA and Eiopa, while the FCA will take the seat on Esma. The PRA and FCA will coordinate their engagement with Europe through memoranda of understanding.
The CII’s submission to the consultation on the draft bill says MoUs are not adequate.
The CII says: “We call for the establishment of an executive level of international coordination committee. It should comprise of representatives of the PRA and the FCA and oversee and be responsible for the regulators’ international engagement.”
In October, European Parliament’s Economic and Monetary Affairs Committee chair Sharon Bowles raised concerns that the proposed twin peaks’ approach could weaken the UK’s influence on issues handled by the Esas.
In its submission, the Association of British Insurers says this means that a strong voice in shaping regulation in the EU is vital. The ABI says: “The UK authorities need to do more to influence EU rules as the Esas are becoming the main source of detailed regulatory requirements for UK financial services firms.”