In the European Commission Communication on stronger financial supervision in Europe based on the report by Jacques de Larosière, the Commission proposes the creation of a new European Systemic Risk Council (ESRC), a European System of Financial Supervisors (ESFS) and new European Supervisory Authorities.
In view of the continued crisis, the FMA welcomes all measures aimed at further integration of markets and at limiting the risks. The “level 3 committees” (banks, insurance companies and securities markets) are to serve as the basis for the new European Supervisory Authorities. As an active member of these committees, the FMA is already in an ideal position to implement the planned changes.
The new European supervisory architecture is not, however, intended as a substitute for national supervisory authorities. Rather, the aim is to engender close, coordinated cooperation amongst all responsible authorities. FMA Executive Director Kurt Pribil stated: “In order to prevent regulatory arbitrage, cross-border companies require cross-border supervision in combination with harmonised regulations. A particularly important factor in this regard is to adapt and toughen sanctions.” “To restore confidence in the market and avoid additional uncertainties, it is essential to implement the planned measures swiftly. While the proposals for a new supervisory architecture are a step in the right direction, a more far-reaching reform including a strong, centralised supervisory institution would be preferable,” FMA Executive Director Helmut Ettl added.
For further information please contact
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-5106