Warring financial watchdogs in Europe have been told to look into resolving disputes through official mediation, in an effort to make cross-border regulation more consistent.
Finance ministers have called on securities regulators to build and test a mediation mechanisms by the end of this year, a move welcomed by financial services groups that want more stable regulation. The call came as European Union ministers last Friday signalled the start of a renewed push to make national watchdogs co-operate, delegate tasks, share information and streamline reporting requirements.
Pressure for supervisory convergence has grown as international mergers and booming cross-border trade require many financial services groups to report to multiple regulators. Despite progress in creating a single set of pan-European rules, the financial services industry says it continues to be hampered by conflicting interpretations of rules and overlapping regulatory requirements.
Finance ministers endorsed a report setting out new goals for convergence.The report - which covered securities, banking and insurance - signalled a shift in focus among member states from the writing of rules to their implementation and enforcement.
It is likely to give added clout to the three so-called Lamfalussy committees that serve as forums for national watchdogs to co-operate. On mediation, finance ministers backed a proposal for a non-binding mechanism to help solve "day-to-day supervisory disputes".
- (Financial Times service)
