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Designed for cross-border financial institutions, the respective lead supervisor would have the sole responsibility for all aspects of prudential supervision. This should apply both for the consolidated level and for branches or subsidiaries.
Their authority would extend to the local supervisors of a specific cross-border financial institution without eliminating the local supervisor of his or her local duties in achieving a systematic and integrated supervision. As far as possible they would act collectively as a 'college of supervisors'. Differences of opinion between supervisors could be ruled by the relevant Lamfalussy committee (CEBS, CEIOPS or the Conglomerates Committee).
An implementation could take place by immediately using the existing powers of delegation provided for by the Second Banking Directive. This should be strengthened and broadened to other financial sectors by an EU directive.
The EFR believes that the introduction and implementation of a lead supervisor regime is both urgent and feasible.