Today, the European Union (EU) released its mandate for the creation of a High Level Expert Group (the “Group”) on EU financial supervision, which will hold its first meeting tomorrow, November 12. Pursuant to the mandate, the Group, which will be chaired by Jacques de Larosière, will make proposals to “strengthen European supervisory arrangements covering all financial sectors, with the objective to establish a more efficient, integrated and sustainable European system of supervision,” and to reinforce “cooperation between European supervisors and their international counterparts.” According to the mandate, the current financial crisis has highlighted the weaknesses in the EU’s supervisory framework, as the “current national-based organisation of EU supervision lacks a framework for delivering supervisory convergence and limits the scope for effective macro-prudential oversight based on a comprehensive view of developments in financial markets and institutions.”

The Group will publish its initial recommendations in February 2009, after it conducts further meetings and hearings, and is not expected to make any public statements prior to that time.