The European Parliament, the European Commission and the member states have agreed on changes in financial supervision. Per 1 January 2011 three independent supervisory authorities will be set up replacing the existing colleges (CESR, CEBS and CEIOPS). The new authorities will have the power where necessary to intervene directly in financial institutions and to mediate in conflicts between national regulators. They will also be able to temporarily prohibit harmful financial activities or products, and to request the Commission to produce rules prohibiting such services and products on a permanent basis. In addition, a European Systemic Risk Board will be set up which will monitor developments that may threaten economic stability. The European Council has adopted the agreement.
The European Parliament will vote on the agreement in the coming weeks.