European Parliament - MEPs to pass sweeping bank controls - European Banking Authority will be based in London

Printer-friendly versionPDF version

Sweeping European supervisory powers over banks and financial institutions in response to the economic crisis are set to be approved by Euro-MPs. A vote in Strasbourg marks the end of months of negotiations to create what Chancellor George Osborne has called a "new financial supervision architecture for the EU". The Chancellor backed the idea, insisting that UK fiscal sovereignty remains intact, with day to day control over banks and other financial institutions staying with the Financial Services Authority, the UK national monitoring authority. But the new accord, already approved by EU finance ministers and set to come into force at the start of next year, centres on the setting up of three new financial watchdogs, to tighten surveillance of the banking, securities and markets, and insurance sectors.

The banking watchdog, the European Banking Authority, will be based in London. The pan-European supervisory system is designed to establish close co-operation and co-ordination between national and European authorities to ensure the stability of the EU's financial system, and close gaps in between different national regimes. A new board made up of heads of European central banks will monitor and act against macro-economic risks as they emerge across Europe. Mr Osborne says the terms of the accord preserve the City of London's competitiveness as a financial centre. During the negotiations he successful fended off efforts to oblige the UK to give Brussels advanced sight of his domestic Budget plans - ahead of Parliament. Instead, as explicitly made clear in the agreement, the Chancellor will continue to announce the Budget to the Commons first. But Open Europe, campaigning for EU reforms, claimed earlier this month that the new supervisory controls amount to a clear shift in power from the UK, giving EU officials a mandate to "interpret, apply and even enforce EU laws at the expense of national regulators".

Short URL
Asymptotix on Twitter

Are the key legislative pillars such as Basel II & III, UCITS IV and Solvency II forcing you to re-examine how you identify, measure and manage risk and capital?

Asymptotix work closely with our partners to help clients develop a more proactive, systematic and integrated approach to governance and risk management to deliver proper value.

Asymptotix can offer the support you need to deliver on time. Read more...

Is the goal of your website to sell services or products, educate, or collect data?

A positive customer experience is vital to conversion, no matter what your conversion goals may be. Our designers and developers will create a positive experience to maximize your conversions and deliver the optimal return on your investment. We strive to find the perfect balance between the web site’s design and functionality.

Asymptotix implements interactive solutions for European companies. From corporate websites to social communities, our clients will tell you an investment in building a scalable online experience will deliver long-term tangible benefits.

Based in Luxembourg we can help you all over Europe. Our multi-lingual team can work with projects and speak your language! Read more...