Council of the EU adopts legislation on EU supervisory framework

The Council of the EU has announced that the following legislation reforming the EU supervisory framework was adopted at a meeting of the Economic and Financial Affairs Council (ECOFIN) on 17 November 2010:

• Regulation on EU macroprudential oversight of the financial system and establishing a European Systemic Risk Board (ESRB).
• Regulation establishing a European Banking Authority (EBA).
• Regulation establishing a European Insurance and Occupational Pensions Authority (EIOPA).
• Regulation establishing a European Securities and Markets Authority (ESMA).
• Directive amending Directives 1998/26/EC, 2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/EC, 2004/39/EC, 2004/109/EC, 2005/60/EC, 2006/48/EC, 2006/49/EC, 2009/65/EC in respect of the powers of the EBA, the EIOPA and the ESMA (known as the Omnibus I Directive).
• Regulation conferring specific tasks on the European Central Bank (ECB) concerning the functioning of the ESRB.

The new EU supervisory system will operate from 1 January 2011.

For more information on reform of the EU financial supervisory framework.