On November 7, the Financial Services Authority and the UK Treasury published a joint paper rejecting calls for a single European financial services rulebook or regulator.
There has recently been a debate about whether the existing pan-EU regulatory committees, CEBS, the Committee of European Securities Regulators (CESR), and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS), is sufficient for enforcing supervisory convergence within the EU.
The FSA and Treasury believe that convergence of national regulatory frameworks and supervisory practices is desirable, but differences in national markets meant domestic supervisors would often need to adopt different approaches and apply different tools in their daily work.
The joint paper recommends that the committees operate in a principles-based way, to achieve equivalent regulatory outcomes and the FSA and Treasury support moves towards more group-based approaches to supervision, where tasks are delegated amongst supervisors and where one supervisor has overall responsibility for the group as a whole.
The joint paper also commented that on occasion insufficient time had been allowed for implementing of EU legislation and that substantial directives and legislative changes should provide sufficient time between their adoption and their implementation date.