11 Financial services
| (31177)
15615/09
—
| Opinion of the European Central Bank of 26 October 2009 on a Draft Regulation on Community macro-prudential oversight of the financial system and establishing a European Systemic Risk Board and a draft Council Decision entrusting the European Central Bank with specific tasks concerning the functioning of the European Systemic Risk Board
|
| Legal base | —
|
| Basis of consideration | Minister's letter of 14 January 2010
|
| Previous Committee Report | HC 5-iv (2009-10), chapter 6 (15 December 2009
|
| To be discussed in Council | None planned
|
| Committee's assessment | Politically important
|
| Committee's decision | Cleared
|
Background
11.1 In September 2009 the Commission published proposals
for a system of Community regulation and supervision of financial
services, which included a draft Regulation to establish a European
Systemic Risk Board and a draft Council Decision to give the European
Central Bank some tasks in support of the proposed Board. The
Commission proposes that:
- the Bank would provide the resources for the Board's Secretariat;
- the Secretariat would assist in the preparation
of Board meetings and the collection and processing of information,
including statistical information; and
- it would prepare analysis necessary to carry
out the Board's tasks and support its Advisory Technical Committee.
11.2 We considered these legislative proposals
on a number of occasions and they were debated on the Floor of
the House on 1 December 2009.[27]
The Council has agreed a general approach on the proposals and
they are now to be considered by the European Parliament.
11.3 In October 2009 the European Central Bank
sent the Council an Opinion on the Commission's proposals to establish
a European Systemic Risk Board and to entrust the Bank with tasks
in support of the Board. When we considered this document, in
December 2009, we asked to hear from the Government whether it
supported or opposed the 13 amendments suggested by the Bank before
considering it further. Meanwhile the document remained under
scrutiny.[28]
The Minister's letter
11.4 The Financial Services Secretary to the
Treasury (Lord Myners) now tells us of the Government's view of
each of the amendments suggested by the Bank. He says that, in
relation to:
Amendments to the draft Regulation
- amending a recital to note
that the Bank is to support the European Systemic Risk Board but
"without prejudice to the principle of the independence of
the ECB in the performance of its tasks pursuant to the Treaty",
the Government supports the Commission and Council view that provisions
in the proposals do not undermine the Bank's independence;
- removing the reference to ensuring "a sustainable
contribution of the financial sector to economic growth"
from the European Systemic Risk Board's objectives, as this is
not considered to be the motivation behind enhanced macro-prudential
oversight, the Government is open on this issue, but supports
the Council position to retain this reference;
- adding the Advisory Technical Committee to the
list of key institutional aspects of the European Systemic Risk
Board, the Government supports this amendment and it has been
accepted by the Council;
- minor amendments to reflect past declarations
and decisions, including the conclusions from the agreement at
the ECOFIN Council of 9 June 2009 and the European Council of
18-19 June 2009, the Government believes this is an issue of drafting
rather than substance;
- an amendment to reflect that the Advisory Technical
Committee will assist the European Systemic Risk Board on a permanent
basis, not just "where requested", the Government supports
this amendment and it has been accepted by the Council;
- adding extra provisions to ensure the European
Systemic Risk Board's independence from "Community institutions
or any other public or private body", in addition to Member
States, the Government supports this amendment and it has been
accepted by the Council;
- another amendment to reflect that the Advisory
Technical Committee will assist the European Systemic Risk Board
on a permanent basis, not just "where requested", the
Government supports this amendment and it has been accepted by
the Council;
- a minor amendment to the terminology used, to
refer to stakeholder "views" rather than "advice",
the Government believes this amendment is an issue of drafting
rather than substance;
Amendments to the draft Council Decision
- clarifying that the Bank's
performance of its tasks will not be hampered by its support of
the European Systemic Risk Board nor by the tasks of the European
Systemic Risk Board itself, the Government supports the Commission
and Council view that provisions in the proposals do not undermine
the Bank's independence;
- adding a new recital to clarify that macro-prudential
supervision covers the financial system "as a whole",
the Government is open on this issue, but does not believe it
is a top priority;
- an amendment relating to the statistical support
the Bank is called upon to provide to the European Systemic Risk
Board, to enable the Secretariat to manage data collected by the
Bank/Board, on behalf of and for the benefit of the Board, the
Government supports the Board's Secretariat being able to function
effectively and efficiently and having access to all the appropriate
data it needs and believes that the Commission's text delivers
this objective;
- changing the title of draft Article 4 from "Management"
to "Functioning of the Secretariat", to more accurately
reflect the Article's contents, the Government has no strong view
on this amendment; and
- adding the Advisory Technical Committee meetings
to the list of meetings that the head of the European Systemic
Risk Board's Secretariat or its representative shall attend, the
Government supports this amendment and it has been accepted by
the Council.
Conclusion
11.5 We are grateful to the Minister for this
response. We have no further questions to ask and now clear the
document.
27 (30950)-(30957) 13645/09, 13648/09, 13652/09-13654-09,
13656/09-13658/09: see HC 19-xxviii (2008-09), chapter 6 (21 October
2009), HC 19-xxx (2008-09), chapter 2 (4 November 2009) and HC
5-i (2009-2010), chapter 2 (19 November 2009) and HC Deb,
1 December 2009, cols. 989-1026. Back
28
See headnote. Back
|
