Cebs and Ceiops release 10 principles for supervisory colleges
Daily news headlines
Two EU Level 3 committees have jointly issued principles for colleges of supervisors' functionality, including cross-border crisis management
LONDON & FRANKFURT - Ten common principles for the operation of supervisory colleges have been jointly released by the Committee of European Banking Supervisors (Cebs), the Committee of European Insurance and Occupational Pensions Supervisors (Ceiops) and their Interim Working Committee on Financial Conglomerates.London-based Cebs and Frankfurt-based Ceiops say the shared principles for European banking and insurance groups are based on experience and are applicable for functioning in a crisis situation.
Principle five in particular refers to emergency functioning:
"The colleges of supervisors shall have agreements in place, laying out the basis for the co-operation between the involved authorities and the practical organisation of the supervisory activities of the group on an ongoing basis and in a crisis situation, including engagement with cross border stability groups.
"In emergency situations, the frequency of contacts between supervisors will rise in general. While preserving a high degree of flexibility, procedures should aim at helping supervisors in considering which authorities to inform, and when, in a crisis situation."
Principle seven also concerns emergency arrangements:
"The colleges of supervisors provide an efficient platform for the gathering and dissemination of relevant or essential information in going-concern and emergency situations, developing a common understanding of the risk profile of the group, achieving co-ordination of supervisory review and risk assessment at group level, as well as establishing supervisory plans for the mitigation of risks at group level."
Cross-border crisis supervision is the subject of ongoing debate in Europe. European Central Bank chairman Jean-Claude Trichet says his institution "stands ready" for supervisory responsibility, rather than supporting the Level 3 committees' pursuit of the supervisory college strategy, which Cebs, for example, embarked on in 2006.
The principles may be downloaded in full by clicking here.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Banks will not be frowned upon for discount window borrowing – Fed official
Risk Live: more banks have completed paperwork to access Fed lending facility than a year ago
Capital One puts OCC’s tough stance on mergers to the test
Proposed Discover deal should be approved but will go under the microscope, ex-regulators say
As FCMs dwindle, regulators fear systemic risk
Panellists highlight dangers of clearing membership becoming more concentrated
EU banks fear green asset ratios paint an unfair picture
Industry lobbyist clashes with lawmaker over usefulness of new sustainability disclosure
EU watchdogs to launch prop trader capital review in April
Prop traders say bank-style IFR rules are driving them out, but doubt EBA will suggest changes
Investors say new SEC disclosures may sit on shelf
Advisory committee questions value of rule 605 changes, even for retail investors
CFTC hears ‘call to action’ from swaps end-users on Basel III
Commissioner Pham mulls engaging with prudential regulators over capital hit on clearing
Iosco gears up for ‘intensive work’ on AI regulation
Watchdogs risk ‘falling behind the curve’, secretary-general warns; FSB also working on guidance
Most read
- Top 10 operational risks for 2024
- Regulators’ FRTB estimates based on faulty premise – industry study
- Top 10 op risks: AI fears drive cyber risk to record high