Understanding Basel III, What Is Different After April 2015
Book Details
Author(s)George Lekatis
ISBN / ASINB00WUYMQV0
ISBN-13978B00WUYMQV2
Sales Rank1,565,457
MarketplaceUnited States 🇺🇸
Description
The Solvency II directive of the European Union includes provisions for the assessment of the solvency regimes and systems of group supervision of countries outside the EU (“third countriesâ€).
The purpose of theses assessments is to determine whether the regimes and systems assessed are equivalent to the comparable provisions of Solvency II.
Today we have an interesting paper from the European Banking Authority (EBA), covering recommendations on the equivalence of confidentiality regimes.
The successful and consistent functioning of colleges of supervisors as provided for in Directive 2013/36/EC (Capital Requirements Directive) is a key element for the complete and thorough supervision of institutions belonging to cross-border banking groups.
The establishment of colleges of supervisors and their operating conditions are set out in Article 116 of that Directive and in the relevant provisions of the Commission Delegated and Implementing Regulations to be issued in accordance with paragraphs 4 and 5 of Article 116 of the Capital Requirements Directive.
In this regard, facilitating the participation of third-country supervisory authorities in the colleges is expected to significantly increase the efficiency and effectiveness of the supervisory work conducted in the colleges.
The EBA is, in accordance with Regulation (EU) No 1093/2010 (EBA Regulation), tasked with promoting the efficient, effective and consistent functioning of the colleges of supervisors and ensuring the consistent application of European Union law within those colleges.
Furthermore, the EBA is tasked with providing assistance on the issue of equivalence.
To carry out its tasks, the EBA may employ various tools, including recommendations, in accordance with Article 16 of the EBA Regulation.
To perform its role, the EBA is in the process of assessing and evaluating the equivalence of the confidentiality regimes of third-country supervisory authorities, primarily for the operational purposes of the colleges and for the participation of third-country supervisory authorities therein.
The EBA aims to complete the assessment of the equivalence of the confidentiality regimes for a number of third-country supervisory authorities within the next two years and to issue relevant recommendations in due course.
The Recommendations in this document on the equivalence of confidentiality regimes (the Recommendations) are being issued following the completion of the first round of assessments of several third-country supervisory authorities.
The Recommendations exclusively concern the assessment of the confidentiality regimes of those third-country supervisory authorities with a view to inform the relevant opinions, which competent authorities that are members of a college of supervisors should express pursuant to Article 116(6) of the Capital Requirements Directive.
The Recommendations do not provide any form of guidance on the appropriateness of such participation as referred to in Article 116(6).
This issue is to be determined by the college of supervisors alone, taking into account the overall structure of the supervised group and the applicable legislation.
Background and rationale
Article 116(6) of the Capital Requirements Directive provides the following:
‘The competent authorities responsible for the supervision of subsidiaries of an EU parent institution or an EU parent financial holding company or EU parent mixed financial holding company and the competent authorities of a host Member State where significant branches as referred to in Article 51 are established ...
The purpose of theses assessments is to determine whether the regimes and systems assessed are equivalent to the comparable provisions of Solvency II.
Today we have an interesting paper from the European Banking Authority (EBA), covering recommendations on the equivalence of confidentiality regimes.
The successful and consistent functioning of colleges of supervisors as provided for in Directive 2013/36/EC (Capital Requirements Directive) is a key element for the complete and thorough supervision of institutions belonging to cross-border banking groups.
The establishment of colleges of supervisors and their operating conditions are set out in Article 116 of that Directive and in the relevant provisions of the Commission Delegated and Implementing Regulations to be issued in accordance with paragraphs 4 and 5 of Article 116 of the Capital Requirements Directive.
In this regard, facilitating the participation of third-country supervisory authorities in the colleges is expected to significantly increase the efficiency and effectiveness of the supervisory work conducted in the colleges.
The EBA is, in accordance with Regulation (EU) No 1093/2010 (EBA Regulation), tasked with promoting the efficient, effective and consistent functioning of the colleges of supervisors and ensuring the consistent application of European Union law within those colleges.
Furthermore, the EBA is tasked with providing assistance on the issue of equivalence.
To carry out its tasks, the EBA may employ various tools, including recommendations, in accordance with Article 16 of the EBA Regulation.
To perform its role, the EBA is in the process of assessing and evaluating the equivalence of the confidentiality regimes of third-country supervisory authorities, primarily for the operational purposes of the colleges and for the participation of third-country supervisory authorities therein.
The EBA aims to complete the assessment of the equivalence of the confidentiality regimes for a number of third-country supervisory authorities within the next two years and to issue relevant recommendations in due course.
The Recommendations in this document on the equivalence of confidentiality regimes (the Recommendations) are being issued following the completion of the first round of assessments of several third-country supervisory authorities.
The Recommendations exclusively concern the assessment of the confidentiality regimes of those third-country supervisory authorities with a view to inform the relevant opinions, which competent authorities that are members of a college of supervisors should express pursuant to Article 116(6) of the Capital Requirements Directive.
The Recommendations do not provide any form of guidance on the appropriateness of such participation as referred to in Article 116(6).
This issue is to be determined by the college of supervisors alone, taking into account the overall structure of the supervised group and the applicable legislation.
Background and rationale
Article 116(6) of the Capital Requirements Directive provides the following:
‘The competent authorities responsible for the supervision of subsidiaries of an EU parent institution or an EU parent financial holding company or EU parent mixed financial holding company and the competent authorities of a host Member State where significant branches as referred to in Article 51 are established ...
More Books by George Lekatis
