EU’s Supervisory Reform
Piotr Madziar – European Commission
15 October 2009, XAC - London
Topics
• European Commission proposal for supervisory
reform
• EU Agenda
• Next steps?
XBRL driving forces
XBRLSimplification Crisis
Stoiberg De
Larosiere
G20
EU Council EP
COM
MS
De Larosiere Reform
• Financial crisis driven
• Position of national regulators?
• Global aspect
• Commission absolute pri...
European Parliament
Resolution on Lamfalussy follow-up: future
structure of supervision (September 2008)
• Calls upon the ...
De Larosiere proposal
• Commission’s proposal of 23 September 2009
• ESRB and ESFS = ECB + ESAs + national regulators+…
• ...
More powers for ESAs
• Technical standards but criteria in Community legislation
• Flow of information
• Supervisory cultu...
Proposed structure for Securites and
Markets
ESMA – European
Securities &
Markets Authority
Chairperson
Mgt Board
Executiv...
Appeal processes
EU Court of
First Instance
EU Council - QMV
Member StateMember State Member State
Board of Appeal for
3 E...
ESFS
ESFS - EU System of Financial
Supervisors
ESMA - European
Securities and
Markets Authority
EIOPA - European
Insurance...
ESRB – EU Systemic Risk Board
ESRB – European
Systemic Risk Board
ECB
ESFS – European
System of Financial
Supervision
3rd ...
Practicalities, Agenda
• Financial assistance 37- 70 M€ in years 2011-2016
• 40% from the Community budget
• London, Paris...
Contacts
• DG Internal Market & Services website:
http://ec.europa.eu/dgs/internal_market/index_en.htm
• Piotr Madziar
+32...
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Xac October 15, 2009 London

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EU Commission presentation at the XBRL Advisory Council (XAC) of the International Accounting Standards Committee Foundation (IASCF)

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  • Thank FESE – Federation of Euroepan Securities Exchanges – for inviting the Commission to talk about the XBRL – the Extensible Business Reporting Language. XBRL – a universal financial reporting framework adopted by several major jurisdictions in the World.
    My name is Piotr Madziar and I represent the European Commission – Direction General Internal Market and Services. Despite the official invitation from your side I must recall that all that I say here is my personal opinion and can not be taken for the official of the European Commission.
  • Despite the fact that I have been asked to talk about the outcome of the consultation on the Review of the Accounting directives:
    - The Council Directive of 25 July 1978 based on Article 54 (3) (g) of the Treaty on the annual accounts of certain types of companies (78/660/EEC). , and
    - The Council Directive of 13 June 1983 based on the Article 54 (3) (g) of the Treaty on consolidated accounts (83/349/EEC),
    in the XBRL aspect,
    I decided to provide an overview of the Commission’s and other Institutions’ initiatives that, either explicitly or implicitly (potentially) identify XBRL and common business reporting format as means to deliver in several policy areas.
    That includes in particular the recent prominent policy to regulate financial markets in the wake of the financial crisis, the European simplification and reduction of administrative burden program, a number of initiatives oriented ot restoration of confidence in the financial markets of the investors, citizens and institutions and, finally numerous measures to streamline the initiatives in the area of information society, ICT infrastructure and access to it.
  • Here my intention was to depict main EU policies driving the concept of harmonizing the business data and identifying XBRL as the only available, royalty-free, quality, global standard, notably the Simplification policy and the crisis-related measures.
    (click)
    The Barroso Commission, on its outset, decided to provide a meaningful follow-up on the Simplification initiative (on the left), by targeting the 25% administrative burden reduction for businesses as one of the measures to deliver on the Lisbon 2000 agenda. A specialized HLG consisting of high profile individuals and chaired by Mr Stoiber was created by the Commission.
    Also the MS used various opportunities to contribute to this initiative, providing policy initiatives and their expertise enriching the EU approach.
    (click)
    The financial crisis, looming since early 2008, provided new challenges the EU institutions were expected to confront: the global and European supervisory structure, market transparency and confidence.
    Other institutions made significant contributions towards forging a common view: the Council and the Parliament.
    We received an initial input from the de Larosiere Group, and subsequently the G20 recommendations as regards the anti-crisis measures to follow.
    (click)
    Other important policies also constitute important potential for XBRL use. Company disclosures, part of the corporate governance framework provide another vast opportunity for alignment between existing jurisdictions, frameworks and systems.
    (click)
    Last but not least, European institutions provide selective measures to boost European competitiveness by automation of business processes, harmonisation of standards and education, within the Lisbon agendas.
  • Xac October 15, 2009 London

    1. 1. EU’s Supervisory Reform Piotr Madziar – European Commission 15 October 2009, XAC - London
    2. 2. Topics • European Commission proposal for supervisory reform • EU Agenda • Next steps?
    3. 3. XBRL driving forces XBRLSimplification Crisis Stoiberg De Larosiere G20 EU Council EP COM MS
    4. 4. De Larosiere Reform • Financial crisis driven • Position of national regulators? • Global aspect • Commission absolute priority.
    5. 5. European Parliament Resolution on Lamfalussy follow-up: future structure of supervision (September 2008) • Calls upon the L3 Committees to design common reporting standards • Multi-purpose format such as XBRL • Throughout the EU • Calls upon the Commission to submit adequate legislative proposals
    6. 6. De Larosiere proposal • Commission’s proposal of 23 September 2009 • ESRB and ESFS = ECB + ESAs + national regulators+… • Banking: colaterals, capital, fund transfer reg,…? • Insurance: insurance and reinsurance, conglomerates, institutions, Solvency II, anti money laundering,…? • Securities & Markets: transparency, markets in FI, market abuse, prospectuses, hedge funds, CRA, take-over bids, settlements, financial collateral arrangements, ...? • Technical standards,…? XBRL? • Links to international standard setters,…? XBRL?
    7. 7. More powers for ESAs • Technical standards but criteria in Community legislation • Flow of information • Supervisory culture and supervisory practices • Last resort option in case of disagreement • Training programmes • Aggregate micro-prudential information from national supervisors • Set-up a Central European Database. The information will be available for the relevant authorities in colleges of supervisors and forwarded to the European Systemic Risk Council • Technical arrangements with international organisations and administrations of third countries.
    8. 8. Proposed structure for Securites and Markets ESMA – European Securities & Markets Authority Chairperson Mgt Board Executive Director ECA - European Court of Auditors OLAF – l’Office européen de lutte anti-fraude European Commission € Securities & Markets Stakeholder Group Board of Supervisors
    9. 9. Appeal processes EU Court of First Instance EU Council - QMV Member StateMember State Member State Board of Appeal for 3 ESAs ESMA NSA NSA NSA EU Court of Justice
    10. 10. ESFS ESFS - EU System of Financial Supervisors ESMA - European Securities and Markets Authority EIOPA - European Insurance and Occupational Pension Authority EBA - European Banking Authority Joint Committee of European Supervisory Authorities College of Supervisors NSA NSA NSA – National Supervisory Authority NSA NSA NSA NSA NSA NSA NSA NSA NSA
    11. 11. ESRB – EU Systemic Risk Board ESRB – European Systemic Risk Board ECB ESFS – European System of Financial Supervision 3rd Countries & Int’l
    12. 12. Practicalities, Agenda • Financial assistance 37- 70 M€ in years 2011-2016 • 40% from the Community budget • London, Paris, Frankfurt • Status similar to EU Agency • 74-90 staff (2016) • EU Staff Regulation (independence, impartiality).
    13. 13. Contacts • DG Internal Market & Services website: http://ec.europa.eu/dgs/internal_market/index_en.htm • Piotr Madziar +32-(0)2-2950869 piotr.madziar@ec.europa.eu

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