On 23 May 2008, the European Commission issued a consultation paper (CP) on amendments to the decisions establishing the three Lamfalussy Level Three committees (See: Consultation Paper). HM Treasury and the FSA have now jointly responded to the CP. The response was also agreed with the Bank of England and the Pensions Regulator (Response). (See: Joint FSA and HMT response and Joint letter to Commissioner).
The main objectives of the CP are:
(i) to align, clarify and strengthen the responsibilities of the Committee of European Securities Regulators (CESR), the Committee of European Banking Supervisors (CEBS) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) (the Committees);
(ii) to ensure their contribution to supervisory cooperation and convergence at EU level; and
(iii) the safeguarding of financial stability.
The Response addresses many of the issues raised in the CP including: the supervisory, mediatory and consultative roles of the Committees, the delegation of tasks by and responsibilities of the Committees, the streamlining of reporting requirements and the establishment of a college of supervisors.
The Response agreed with the proposal that there should be no change in the legal status of the Committees and welcomed the proposed development of a common supervisory culture, cross-sectoral co-operation and an information exchange. However, it did not agree with the proposed operational arrangements or the oversight and enforcement roles for the Committees. The consultation period for the CP ended on 18 July 2008. Feedback from the CP has not been published.
For background information please see out previous blog: FSA Calls for Increased Co-operation in Europe.