Any discussion
on the future structure of financial services supervision
in the EU must take as its guideline the objectives of financial
market supervision. These include systemic stability, efficiency
and competitive neutrality. Moreover, the structure of financial
services supervision should support the aim of creating a
single market for financial services in the EU. Deficiencies
of the previous structure were generally acknowledged, and
there is wide agreement on the need for an intensification
of co-operation between national supervisors. Consequently,
new pan-European arrangements for supervisory collaboration
are now coming into effect, whose adequacy for the purpose
is as yet largely untested. Although there is growing agreement
on extending Lamfalussy-type structures to banking and insurance
markets as well as financial conglomerates, there are widely
divergent views as regards, on the one hand, the role of central
banks in financial services supervision and, on the other
hand, the need for a supranational European supervisory authority.
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The background
The supervisory regime in the EU
was, by and large, unaffected by EMU. No changes were made to
the institutional structure of financial services supervision.
However, it is important to realise that EMU is not the only reason
for the discussion on the future shape of supervision in Europe:
the discussion must be seen against the broader background of
increasing integration of financial markets across borders and
sectors; the political commitment to create a single European
market for financial services; the creation of integrated financial
supervisors in some member states (notably in the UK and in Germany);
EU enlargement; and the EU Convention.
