On 4 March 2009, the European Commission published a communication on the de Larosière report for the Spring European Council meeting.
In the communication the Commission welcomed the report and shared the Group's analysis of the causes of the financial crisis. The Commission agreed that the report’s 31 recommendations offer a comprehensive set of concrete solutions for regulatory, supervisory and global repair action.
The report's recommendation on the need to develop a harmonised core set of standards to be applied throughout the EU was of particular interest to the Commission. Key differences in national legislation stemming from exceptions, derogations, additions made at national level or ambiguities in current Directives should be identified and removed.
The Commission further stated that it would bring forward as a matter of priority proposals relating to the regulation of hedge funds and other non-bank investment players, transparency of derivatives markets and improved accounting rules.
Later on in the communication the Commission stated that it would propose:
"A comprehensive legislative instrument establishing regulatory and supervisory standards for hedge funds, private equity and other systemically important market players (April 2009.)"
Near the end of the communication the Commission discussed the European contribution to the forthcoming G-20 summit. The Commission lists a number of firm commitments to improve the global financial and regulatory system. On enhancing sound regulation the Commission states:
"Regulation and supervision, and in particular the Basel Committee's prudential standards, should be extended to all relevant systemic actors – hedge funds, private equity, and other non-regulated credit institutions."
Building on the report’s recommendations, the Commission will present a European financial supervision package before the end of May 2009, for decision at the June European Council. The legislative changes to give effect to these proposals will follow in the autumn and should be adopted in time for the renewed supervisory arrangements to be up and running by the end of 2010. The package will include measures to establish a European body to oversee the stability of the financial system as a whole and proposals on the architecture of a European financial supervision system. The Commission will also publish a White Paper on early intervention by June 2009.
View Communication for the Spring European Council - Driving European recovery, 4 March 2009