View more on these topics

EC wants council to assess financial risk

The European Commission is calling for the creation of a new European Systemic Risk Council and European System of Financial Supervisors as part of its reforms to financial supervision in the EU.

The EC says a European Systemic Risk Council should monitor and assess risks to the stability of the financial system as a whole. The ESRC will provide early warning of systemic risks that may be building up and, where necessary, recommendations for action to deal with these risks.

The EC says the creation of the ESRC would address one of the fundamental weaknesses highlighted by this crisis, which is “interconnected, complex, sectoral and cross-sectoral systemic risks”.

It is also calling for a European System of Financial Supervisors for the supervision of individual financial institutions.

This will consist of a “robust” network of national financial supervisors working with new European Supervisory Authorities created by the transformation of existing committees for the banking securities and insurance and occupational pensions sectors. Legislation will follow in the autumn.

ABI director of financial regulation and taxation Peter Vipond says: “It looks like the ‘supervisor of supervisors’ that we have argued for will become a reality. It will provide consistency across Europe, something desperately needed by companies which operate across national boundaries.”


Conrad had a point

Once I had a fund and it was a gas – soon turned out, had a heart of glass.


News and expert analysis straight to your inbox

Sign up


    Leave a comment