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Europe
While it would be easy to focus our attentions on the domestic regulatory scene, this would be to do a disservice to our members. With over 70% of all new regulatory proposals coming from Brussels, it is essential that the professional advisory voice is heard at a European level where many issues will impact on our members. To help ensure our voice is heard at the European level we are members of a leading European trade body (BIPAR).
The events and economic turmoil of the past 18 months have led to much discussion in Brussels around the financial supervisory role of the EU. Europe's response to the credit crunch has been criticised by many for being too nation-based and needing more EU involvement, possibly via the European Central Bank. Discussions have therefore centred around what measures can be taken to improve coordination, supervision and regulation of EU countries to ensure that the current situation is never repeated.
On 25 February 2009 the chairman of the EU’s high-level group on financial supervision, Jacques de Larosière, published a report containing 66 proposals for a new European system of financial supervision. The report’s call for the City of London and other financial institutions to be supervised by a new pan-European risk watchdog has attracted the most attention. Its aim would be to give an early warning of the kind of mistakes that led to the financial crisis. Other proposals include the European supervision of credit rating agencies, and the strengthening of sanctions and supervisory powers throughout the EU.
EU heads of state and leading figures in the EU’s financial services institutions are in broad agreement with the Larosière Report as to the nature and depth of the required regulatory reform. It seems likely, therefore, that the report will be the blueprint for the forthcoming change agenda.