Lisbon comitology in practice – a Commission perspective on the

financial services sector

Jan CeyssensEuropean Commission – DG Internal Market and Services

6 March 2013

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Structure of the presentation

• Background – financial services & comitology

• The case of technical standards developed by the European Supervisory Authorities

• Practical experience

3/2/2012

Background (1): Financial services & comitology

• Lamfalussy process - Strong need for technical input to achieve regulatory harmonisation

• => Implementation of Action Plan (FSAP) by way of framework directives, implemented by comitology measures

• Mostly regulatory measures - Pre-Lisbon mainly regulatory procedure with scrutiny/PRAC

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Background (2): EU financial services agenda

• Response to crisis developments: • => Major regulatory overhaul to strengthen EU

financial services regulation (basis: G20)• => Objective of a single rulebook

• Regulatory divergences had contributed to weak supervision

• Banking Union – joint supervision requires joint rules

• => New European Supervisory Authorities – institutionalised expertise

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Technical Standards

• Development of Technical standards

to ensure• - consistent harmonisation • - uniform implementation

• of EU financial services legislation

New task conferred to

ESAs

Single Rule book

Technical standards - Scope

• For purely technical matters, the development of which:

• does not involve strategic decision or policy choices

• requires the expertise of supervisory experts

For other matters: "ordinary" DA/IA procedure

Technical standards - Scope

Regulatory TS

Develop, specify, establishthe conditions for consistent

harmonisation of EU rulesEX: Specify information to be

notified to competent authorities

Implementing TS

Set conditions for the uniform application of EU rules

EX: Establish standard forms, and procedures for the transmission of

information to competent authorities

Delegated acts Implementing acts

Technical Standards - procedure

1) Development of draft standards by the ESAs in areas specified in EU law

2) Endorsement by the Commission as regulatory or implementing technical standards

3) Adoption by means of regulations or decisions

Technical standards – Procedure

• Development of draft TS by ESAs• Respect of better regulation principles

- Open public consultation- Impact assessment

- Opinion of stakeholders groups Submission to Commission

Forward to Council and EP

Technical standards – Procedure

• Endorsement & adoption by Commission • within 3 months

• If partial or no endorsement : back to the ESAs=> Differences may be discussed with EP• If endorsement: adoption (for IA NO comitology)

For regulatory TS: - Council or EP may object (objection periods:

if COM endorses: 1 plus 1, otherwise 3 plus 3)

Practice (1) – state of play

Almost all legislative acts under reviewEmpowerments in force and Delegated acts/Implementing acts

adopted in the following areas:

• => Credit Rating Agencies • => Securities Prospectus• => Short selling• => Alternative Investment Funds• => Derivatives (EMiR)

And much more in the future…

Practice (2) - empowerments

- Normally follow common understanding, but with some specificities on the objection period (1 plus 1 for TS – 3 plus 3 for other acts)

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- Discussions in Council/EP on choice of procedure (DA/IA/TS)

Practice (3) - preparations

Legal deadlines: short deadlines for adoption set in legislative acts => challenge for ESAs, COM and EP

Consultations:commitment under Declaration No. 39 / common understanding / EP-COM agreement=> for BTS considered to be fulfilled => for other delegated acts newly set up expert groups – EP may request presence (EP/COM agreement)

Thank you for your attention