The institution would be independent from the European Commission and would replace the existing three Level 3 Committees CEBS, CESR and CEIOPS.
The body would encompass both prudential and conduct of business regulation although it would have no powers over national supervisors to change individual regulatory decisions nor to prescribe supervisory practice.
Its roles and responsibilities would include the drafting of detailed technical rules, giving advice to the Commission on drafting framework directive texts and the issuance of non binding guidance to members states on best practice.
Also, oversight of activities of EU supervisory colleges of supervisors to include promulgation of “best practice” exchanges. It would also be in charge of the oversight of peer review of regulatory outcomes, together with suggestions for best practice on a “comply or explain” basis.
Turner says in the report: “The current arrangements, combining branch passporting rights, home country supervision,and purely national deposit insurance, are not a sound basis for the future regulation and supervision of European cross-border retail banks.
“This body would be an independent authority with regulatory powers, a standard setter and overseer in the area of supervision and would be involved alongside central banks in macro-prudential analysis while leaving primary responsibility for supervision at member state level.”