EC presses ahead with plans to end CEIOPS
EUROPE - The European Commission is going ahead with plans to scrap the existing supervision of EU regulation, as well as the body which supervises pensions, and replace it with a new system designed to give officials more authority over key decision-making.
A statement, issued today by EC president José Barroso and Internal Markets and Services Commissioners Charlie McCreevy, confirmed the EC has adopted draft legislation to introduce two new streams of supervision which it hopes will reduce the prospect of potential systemic risk in European financial services, and give three new bodies the power to resolve supervisor disputes and deliver more consistency in rule enforcement.
A European Systemic Risk Board (ESRB) is being introduced to detect risks to the financial system's central function while existing supervisory bodies, such as the Committee for European Insurance and Occupational Pensions Supervisors (CEIOPS) will be superceded by European System of Financial Supervisors (ESFS).
CEIOPS will be replaced by the European Insurance and Occupational Pensions Authority (EIOPA), alongside the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA).
These micro-prudential supervisory bodies will develop proposals for technical standards, resolves disagreements between national supervisors and coordinate emergency situations.
Officials from the three current supervisory bodies - CEIOPS, CESR and CEBR - have expressed their desire to remain involved in the formation of the new regime, by stating:
"We view an evolutionary approach as the most efficient way to ensure a smooth transition towards the Supervisory Authorities, benefiting from the expertise available in the current three Level 3 Committees from the start.
"We are ready to actively contribute to further refinements of the legislative proposals and to provide our input into building effective new Supervisory Authorities with appropriate powers."
The plans were first announced in May and then subjected to consultation. (See earlier IPE story: EC to replace CEIOPS)
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