FINANCIAL SUPERVISION
HISTORY
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Financial Services Action Plan (1999)
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Internal Market Financial Services.
43 regulations.
García-Margallo Report EP (2000)
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3 targets
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Divorce
Integration
Supervision
Harmonization
Speed
Intensity
Pan European Institutions
National Supervisors
CRISIS
Following Reports: Van den Burg on prudential supervision, Van den Burg
on financial services policy, Van den Burg & Daianu recommendations to the
Commission on Lamfalussy follow-up…
Crisis: Larosière Report and Turner Review.
Commission: Driving European Recovery (4/04/2009), European Financial
Supervision (27/05/2009).
European Council (12/2009): Single Rule Book. Individual Decision.
Safeguards.
European Parliament: Coordinators Declaration (2010).
INTERNATIONAL DOCUMENTS
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“A Fair and Substancial Contribution by the
Financial Sector” (IMF 4/16/2010): Financial
Supervision Commission.
USA – Obama.
Europe 2020 A European strategy for smart,
sustainable and inclusive growth (3/03/2010):
crisis management and responsibility of the
financial sector.
European Council (25-26/03/2010): Systemic
Institutions.
EUROPEAN SYSTEM (Art. 1a)
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Composition of the European System for Financial
Supervision:
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National Authorities.
Systemic Risk Board.
3 European Authorities: Banking, Insurance and Occupational
Pensions and Securities and Markets
Joint Committee.
Commission.
Strong idea: reinforce the idea of a system. ONE
SUPERVISOR
National Authorities accountable to the European
Parliament.
RISKY TRANSACTIONS
(Art. 6.2(fb))
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Temporary prohibition.
Decision reviewed.
EUROPEAN SINGLE RULEBOOK
(Art. 7-8)
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Regulatory Standards
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EBA strong and responsible to the EP.
Open consultation.
Impact study.
The Commission has limited power to modify
proposals.
Disagreement between EBA and Commission: control
by the EP and the Council.
Implementing acts (Art. 291 TFEU).
Orientations and recommendations (ex. Bonus):
accountability.
INDIVIDUAL DECISIONS
(Art. 9-10-11)
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When?:
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To whom?:
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non-fulfillment of European Law;
emergency situations;
disagreements within Colleges of Supervisor.
National Supervisor.
Financial Institutions.
Review: Board of Appeal (legality).
Appeal to the Council: Safeguard Clause.
SUPERVISION OF CROSSBORDER
INSTITUTIONS (Art. 12-12a,b,c,d)
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Theoretical approach (Turner Review):
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Current mechanisms do not work.
Only two solutions: more protectionism or more Europe.
National Solution: more power for the supervisor of the
hosting country = market blow up.
European Solution:
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EBA leadership in the Colleges of Supervisors:
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Regulatory and implementing standards.
binding mediation.
Reinforced supervision of Institutions that may pose a systemic risk
(yellow alarm).
Banking Resolution Unit (red alarm).
European Funds:
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European Deposit Guarantee Skims.
European Stability Fund.
INTERNATIONAL RELATIONS
(Art. 18)
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Europe single voice.
Supervisor arrangament with third
countries authorities.
Administrative arrangaments and
equivalent decisions.
STAKEHOLDER GROUP: SME
(Art. 22)
SAFEGUARDS (Art. 23)
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Direct and significant impact.
Impact study.
Ratification of the Authority's decision: by
simple majority.
Revocation of the Authority's decision: by
qualified majority.
JOINT COMMITTEE (Art. 40-43)
REVISION CLAUSE (Art. 66)
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Proposals to implement Art. 12: 6 months.
Proposals to evaluate experience acquared:
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Conversion in supervisory standards practices reached
by National Authorities;
the functioning of the Colleges of Supervisors;
the role of the Authority on the supervision of
Systemic Institutions;
the application of the Safeguard Clause established in
Art. 23.