EC: No corp gov powers for ESAs
Monday 30 January 2012 - by Karina Whalley
Speaking at a conference on EU regulation and supervision in Helsinki on Friday, head of the EC's banking and financial conglomerates unit Mario Nava, said if corporate governance is limited to companies regulating themselves, it will be difficult to implement and risks being less effective.
He commended Solvency II for its uniform toolkit for supervisors but said it does not yet contain harmonised sanctions. CRD IV ventures into the area but proposes only minimally harmonised sanctions, he said.
Also speaking at the Finnish Financial Supervisory Authority conference was Steven Maijoor, head of the European Securities and Markets Authority who said the main objectives for the body over the next two years includes the supervision of credit rating agencies and trade repositories.
He said: "Expect intense activity towards the single rulebook."
Other speakers at the seminar included Andrea Enria, chair of the EBA and Gabriel Bernardino chair of Eiopa. While most discussion centred around greater cooperation between regulatory bodies, a member of the private sector highlighted the issue of blame.
"The division of responsibility between regulators and taxpayers, on one side, and the financial industry on the other, has to be redesigned," Johnny Akerholm, head of the Nordic Investment Bank said.
"Regulators and taxpayers have taken over too much responsibility".
He recommended that regulatory authorities should be able to take over and install new management in struggling banks, wind down and dissolve banks and enforce full transparency of the compensation system.
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