27 January 2009
De Larosiere Group on European Financial Supervision: City of
London Corporation calls for Colleges of Supervisors to be
strengthened urgently
The City of London Corporation has called for urgent changes to
strengthen the way in which financial services supervisors (such as
the UK’s Financial Services Authority) coordinate their work in the
European Union.
Stuart Fraser, Chairman of the Policy and Resources Committee of
the City of London Corporation said:
“The status quo is clearly unacceptable. We urgently need to
improve the way supervisors coordinate their work across borders –
both within the EU and globally. The financial services industry is
truly global so supervision needs to match that.”
In a letter to Jacques de Larosiere, President of the High Level
Expert Group on Financial Supervision for the European Commission,
Stuart Fraser said:
- Colleges of Supervisors should be urgently reinforced so that
they work efficiently and deliver more effective and coordinated
supervision of cross-border groups.
- Each college should have a strong lead supervisor and a robust
system of peer group review.
- The Lamfalussy Committees (CESR, CEBS and CEIOPS) which
coordinate supervision of the banking, securities and pensions
industries should be significantly strengthened. They need extra
resources to deliver more coordination and the power to set
supervisory standards and ensure their appropriate
implementation.
The City of London Corporation does not rule out more radical
changes to EU cross-border supervision in the future. Stuart Fraser
said:
“I would not rule out more integrated EU approaches in future,
as long as they could demonstrably deliver better outcomes – that
means a higher quality of supervision and financial stability
management.”
Stuart Fraser also stressed the importance of coordination
between the EU and other financial centres:
“Strengthening cooperation within the EU is a good start, but it
is not enough. The advantage of Colleges is that they can be
extended to include supervisors from outside the EU. This is the
approach suggested by the G20, which the City fully supports. The
EU now has an opportunity to lead the world as it creates a new
architecture for global financial supervision, by showing that
Colleges – if taken seriously and properly resourced – can be an
effective structure for coordination.”
Ends
Notes to Editors
-
Download the full text of the letter from Stuart
Fraser to Jacques de Larosiere here (1.2mb)
- Stuart Fraser is Chairman of the Policy and
Resources Committee of the City of London Corporation.
Download his photo here.
- The City of London Corporation, which provides local government
services for the Square Mile, the financial and commercial heart of
Britain, works nationally and internationally to maintain and
enhance the City as a world-leading international financial and
business centre.
- For press enquiries please contact Laura Citron on 020 7332
1835 or
laura.citron@cityoflondon.gov.uk