The London Stock Exchange has responded to a CESR paper for comment on the proposal to establish a mechanism for resolving disputes between regulators. In our response, we agree with most of the key features proposed by CESR. We believe that the mechanism should make a significant contribution to supervisory convergence in the EU. However, we are concerned that policy on the role and input of market participants in the process has not been fully developed. We believe that market participants have an important role to play in identifying supervisory problems and that the proposed process should do more to ensure that CESR Members deal with participants' concerns seriously. Where participants' concerns are not referred to mediation, CESR Members should be required to notify CESR.
The original consultation paper can be found at:
http://www.cesr-eu.org/consultation_details.php?id=67