Europe looks to strengthen financial oversight

The European Commission said it is looking to strengthen the responsibilities of Europe’s financial services regulators following the recent turmoil in financial markets.

Internal Market and Services Commissioner Charlie McCreevy said: ‘The financial turmoil has shown that we need to upgrade the current supervisory architecture.’

McCreevy suggested that by ‘implementing a series of practical, incremental and result-oriented initiatives’ the Commission would ‘strengthen European supervisory and stability arrangements.’

The EC has launched consultation to clarify and reinforce the role of the Committees of Supervisors—a number of bodies in which European officials oversee banking, insurance and pension operations.

McCreevy said the measures would ‘lead to a more cost-effective supervisory framework and to better financial stability monitoring.’

The Commission expects to publish its proposals by the end of the year.