Featured Product

    ESAs Report on Supervisory Independence of Competent Authorities

    October 18, 2021

    The European Supervisory Authorities (ESAs) published individual reports on the supervisory independence of competent authorities in their respective sectors. Based on the self-assessment of competent authorities, the three reports highlight that the independence of competent authorities is multi-faceted and dependent on a number of legal, institutional, operational, and cultural factors. The three reports take stock of the competent authorities’ independence along the key areas of operational, financial, and personal independence as well as accountability and transparency. The reports seek to factually represent the arrangements and practices reported by competent authorities, without assessing the independence of individual competent authorities.

    The reports set out the following key findings with respect to each area:

    • Operational independence. While the vast majority of competent authorities are established as independent bodies, a few are established under the aegis of a ministry and a limited number are required to reply to requests made by certain public bodies, such as Ministers. Not all competent authorities report being in a position to hire staff at the level needed for the fulfilment of their supervisory tasks.
    • Financial independence. Almost all competent authorities reported adequate funding. However, a variety of funding models are in operation, with some being subject to centralized government budget rules and a few allowing for the creation of reserves.
    • Personal independence. While a framework is in place at most competent authorities, there are differences on aspects such as terms of office and removal conditions for competent authorities’ senior management and board members, management of conflicts of interest, cooling-off periods, and legal protection for staff.
    • Transparency and accountability. Competent authorities typically ensure public transparency through the publication of documents such as annual reports or financial statements, disclosing supervisory measures taken, and through duties to report periodically on their activities to a government entity or democratic assembly. Some publish documents in English as a way to enhance transparency.

    EBA will use these findings to consider, together with ESMA and EIOPA, how to further develop the monitoring and fostering of supervisory independence. Potential activities might include monitoring supervisory independence through periodic surveys, monitoring conflicts of interest, establishing common EU-wide criteria for supervisory independence, benchmarking/assessment of supervisory independence, and advice on legislative change. The reports can support competent authorities in assessing whether it might be desirable to seek any legislative or regulatory amendment to further improve the framework underpinning their independence. In addition, the reports may be used by the European Commission as input for its own report on the independence of competent authorities, which it is preparing under the review clauses of the ESAs founding regulations.

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, Competent Authorities, Supervisory Independence, EBA, EIOPA, ESMA, EC, ESAs

    Related Articles
    News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8700