Three new pan-European supervisory groups are drawing up a common rulebook in a wide range of financial services areas, from technical insurance standards to short-selling, for banks, insurers and securities markets, to bolster day-to-day supervision by national authorities, under laws to be unveiled by the European Commission – reported The Financial Times. As a result, the regulatory bodies are expected to have more powers than three existing EU committees, which now play only a co-ordinating role.
Reportedly, the proposals include the formation of a new “European Systemic Risk Board”, comprising of representatives of central banks and financial supervisory agencies across the 27-country bloc European Union, to study and analyse financial issues.
Karel Lannoo, chief executive of the Centre for European Policy Studies, a Brussels-based think-tank, said: “The Commission is walking a very tight line – and in the Council [among member states] it may find some opposition. The Commission has traditionally been involved in regulation. Now it is being involved indirectly in supervision,” reported the newspaper.
