• Key European Financial Market Players Issue Joint Statement Calling for Improved Financial Supervision
  • July 29, 2009
  • Law Firm: Alston & Bird LLP - Atlanta Office
  • On Friday, some of Europe’s key financial market players, including the European Banking Federation (EBF), the European Federation for Retirement Provision (EFRP), the European Private Equity and Venture Capital Association (EVCA), the Federation of European Accountants (FEE), the Federation of European Securities Exchanges (FESE) and BUSINESSEUROPE issued a joint statement expressing their support for “a reinforced European Financial Supervision system, broadly supporting the European Council [recent] Conclusions.” The joint statement notes that the present financial crisis “has highlighted the need for global approaches to reinforce cross-border oversight and develop effective early warning systems.” The adoption of such measures “will help restore confidence in financial markets and will contribute to the recovery of the European economy.” The business and financial associations also emphasize in the joint statement that both macro- and micro-prudential supervision “should be upgraded for all financial activities.”

    Specifically, the business and financial associations stressed “that improved European Financial Supervision should be underpinned by the following principles and objectives:”

    • ensuring financial stability and restoring investor confidence;
    • eliminating “harmful national divergences in supervision”;
    • implementing enhanced regulatory principles;
    • promoting “high quality principles-based global standards and contribut[ing] to European competitiveness”;
    • adopting “measures to promote market transparency and accountability;”
    • ensuring “an effective free movement of capital in the EU and globally;”
    • building European cooperation on the strengths of national supervisory structures; and 
    • resolving “potential data security issues and avoid[ing] duplication of data requests and reporting requirements.”

    The business and financial associations noted that “further enhance[ment] of the effectiveness of cross-border oversight and trust-building amongst supervisors, progress will also be needed on cross-border early intervention and common burden sharing criteria in the event of a crisis and lender of last resort situations.” Representatives of the associations also reiterated their commitment “to actively contribute to the ongoing discussions on financial market reforms in order to reinforce financial stability and create the necessary infrastructure to shore up wealth and job creation by companies and contribute to the sustainable development of the European economy.”