The Commission's Proposal for a New European Systemic Risk Board: An Evaluation

The Commission's Proposal for a New European Systemic Risk Board: An Evaluation.

Miriam Goldby

This article evaluates the European Commission's 'Proposal for a Regulation of the European Parliament and of the Council on Community macro prudential oversight of the financial system and establishing a European Systemic Risk Board'. An overview is given of the Proposal's background and context. Its provisions are examined in detail and an evaluation is made of the extent to which the Board, as proposed, is likely to be able to accomplish its mission to prevent or mitigate systemic risks within the financial system so as to avoid episodes of widespread financial distress. Areas of concern are discussed. The article concludes that while the Proposal is a good first draft for legislation putting the de Larosiere recommendations into effect, there is room for improvement in certain areas, including the Board's composition, and its accountability. Certain provisions would also benefit from clarification, especially those regarding access to information.

Law and Financial Markets Review, Vol. 4, No. 1, Jan 2010: 48-57.

Online

Originally Published: 
01/01/2011