EUROPE - The European Commission has adopted additional proposals clarifying the scope of the new European Supervisory Authorities.
The EC adopted proposals for a regulation establishing a new framework that included three new European Supervisory Authorities. One of them will be on the insurance and occupational pensions sectors - the European Insurance and Occupational Pensions Authority (EIOPA).
The EC identified high level principles, according to which the Authorities would be able to develop draft technical standards. It also said sectoral legislation changes as well as general legislative amendments would be needed to implement the new system.
In practice, the EC said, the types of areas covered by technical standards fall into three categories. Firstly, standards may be developed in those areas where detailed methodological or quantitative standards are required to ensure consistent application of certain rules and where there is generally less need for supervisory judgment.
Secondly, in those areas that would benefit from a uniform approach to reporting or disclosure. Thirdly, in those areas where supervisors would benefit from a consistent approach to cooperation processes including supervisory risk assessment and information sharing.
In addition, the proposals stated disagreements between supervisors were fully covered by the regulation with no consequential changes to the sectoral legislation required.
However, it also said in those areas where there was already some form of non-binding mediation process possible, or where there were time limits for joint decisions to be taken by one or more supervisors, amendments would be needed to incorporate in an appropriate way the possibility for the authorities to settle disagreements.
The package will be sent on to the Council and the European Parliament for consideration.
The package had also created the European System of Financial Supervisors, which will consist of a network of national financial supervisors working in tandem with new European Supervisory Authorities, created by the transformation of existing Committees for the banking, securities, and insurance and occupational pensions sectors.
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