Europe's new supervisory bodies should not get involved in day-to-day supervision of financial markets, the Financial Services Authority warned yesterday.
The new European supervisory agencies can play a useful role in making sure there are clearly and equally implemented European rulebooks, the City watchdog's chairman, Adair Turner, told a conference. But it was "vitally important" the new bodies did not try to take on direct supervisory powers themselves, Lord Turner added.
The FSA was happy with the definition of the powers for the new bodies, but Lord Turner added: "We are clear the fundamental process of supervision has to occur where expertise is, with the national authorities."
The EU has just approved the creation of three new pan-EU supervisors for securities, insurers and banks, along with a European Systemic Risk Board to spot broader risks in the market as part of wider efforts to plug gaps highlighted by the financial crisis.Reuse content