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04 November 2013

IPE: ECON backs Bernardino's call for independent levy to fund EIOPA


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European parliamentarians have backed a call from EIOPA to raise its own funding through a levy on the industry, noting that it could improve the regulator's functioning.


The Parliament’s committee on economic and monetary affairs (ECON) endorsed the move in a recent report examining the European Commission’s tripartite regulatory system comprising EIOPA, the European Securities and Markets Authority and the European Banking Authority. It said the European Supervisory Authorities should be granted an independent budget “funded by the contributions from market participants and the Union budget” and also suggested the powers of the regulators’ chairmen – in the case of EIOPA, Gabriel Bernardino – should be enhanced.

Dave Roberts, a senior consultant at Towers Watson in London, noted that while defined benefit (DB) funds would likely see sponsors pay the fees, in the case of defined contribution (DC) schemes the cost would “ultimately” be borne by the member.

When the prospect of an independent levy was first raised by Bernardino, he said EIOPA required additional funding to attract the staff to implement the insurance sector’s Solvency II Directive. Justifying his calls to grant the chairmen greater powers, he added: “To ensure an adequate and consistent level of supervision, for the benefit of consumer protection and financial stability, it is fundamental to strengthen our independent challenging role towards national competent authorities".

Full article (IPE registration required)

ESFS-report



© IPE International Publishers Ltd.


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