current challenges of the financial regulation and supervision
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Current challenges of the financial regulation and supervision. New European Union System for Safeguarding Financial Stability. Current situation. 3 committees exist in financial services sector at EU level with advisory powers ( Lamfalussy level 3 Committees ): - PowerPoint PPT PresentationTRANSCRIPT
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New European Union System for Safeguarding Financial Stability
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3 committees exist in financial services sector at EU level with advisory powers (Lamfalussy level 3 Committees): Committee of European Banking Supervisors
(CEBS), Committee of European Insurance and
Occupational Pensions Committee (CEIOPS) Committee of European Securities Regulators
(CESR).
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• High-level group chaired by J. de Larosière recommended transforming the three Committees into European Authorities (Micro prudential supervision)
• Introducing Macro-prudential supervision to limit the distress of the financial system as a whole in order to protect the overall economy from significant losses in real output
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Source: de Larosiere Report 4
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• Creation of a new European Systemic Risk Board (ESRB) and
• European System of Financial Supervisors (ESFS), composed of new European Supervisory Authorities
• Legislative proposals already exist• Supervisors should be established in the
beginning of 2011
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• Part of European System of Financial Supervisors
• Transformation from CESR to ESMA• Board of supervisors (heads of national
supervisors) is decision-making body• Internal organization (Chairperson,
Executive Director, etc.)
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• Improving the functioning of the internal market
• Effective and consistent level of regulation and supervision
• Protecting investors• Ensuring the integrity, efficiency and orderly
functioning of financial markets• Safeguarding the stability of the financial
system• Strengthening international supervisory
coordination7
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• Develop technical standards• Powers to ensure the consistent
application of Community rules• Action in emergency situations• Settlement of disagreements between
national supervisory authorities• Colleges of supervisors
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• Common supervisory culture, delegation of tasks and responsibilities and peer reviews
• Assessment of market developments• International and advisory role• Collection of information• Relationship with the ESRB• Safeguard
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• Adoption to the EU new supervision system (adjustment of the SMA, BS and ISA to the new system)
• Development of Slovenian capital market (How to increase liquidity on LJSE?)
• Introduction of new UCITS legislation• Pension reform (three pillars system and
new competencies for the SMA)
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Thank you for your attention
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