EU Creates Four New Bodies To Supervise Financial Markets
A key political agreement on supervision of financial markets was reached today in Brussels by the European Parliament and the EU Council of Ministers.
The agreement involves the creation of three European supervisory authorities on financial services, the banking system and the insurance and occupational pensions sectors and the creation of a European systemic risk board (ESRB).
The three Euro MPs who led negotiations for the S&D group — economic and monetary affairs spokesman Udo Bullmann, rapporteur Peter Skinner and rapporteur Antolin Sanchez Presedo — expressed their satisfaction with the deal.
In a joint statement, the three Euro MPs said: “The negotiations were long and tough but we managed to improve the Commission’s original proposals on a number of key points.
“As the new watchdog over all sectors of financial markets, the ESRB will have the power to assess systemic risks. The European supervisory bodies will have a leading role in supervisory colleges for cross-border financial institutions.
“By designing this new architecture, the EU has made a huge step forward in avoiding any new financial crisis. Nevertheless, more needs to be done.
“We expect European leaders to show the same level of ambition in securing a deal to regulate hedge funds and private equity as well as the markets for derivatives.”