Response to CESR's analytical paper "Which Supervisory Tools for the EU Securities Market?"
The London Stock Exchange has responded to CESR’s paper “Which Supervisory Tools for the EU Securities Market?” which analyses the role of securities regulators in ensuring full and consistent implementation and enforcement of the Financial Services Action Plan.
We are very supportive of the work that CESR has conducted so far and we believe that cooperation, open discussion and transparency amongst regulators across the EU is an essential part of making the Lamfalussy process work - this is especially important in the area of market abuse, where approaches taken in one jurisdiction need to be communicated in order that workable solutions can be found that enable participants to operate cross-border, without being required to act in very different ways in different jurisdictions.
We believe differences in regulators powers and approaches should be reduced by the FSAP Directives which contain specific provisions for the designation of competent authorities in each Member State and for the powers that they should be granted. This should facilitate convergence – and failure by Member States to implement properly should be taken up by the Commission, using enforcement powers at Level 4. Therefore, it may be unnecessary for a separate programme to be developed as powers should converge as directives are implemented and enforced.
We note that the consultation states “CESR is firmly determined to develop its political and democratic accountability links”. However it is our belief that if CESR decides to move in this direction, Level 3 must develop in an open and transparent manner that fully respects the institutional boundaries that were so carefully set out under the Lamfalussy report. Any such change should be balanced, and done in co-ordination with the European Parliament and the Commission.
The original consultation paper can be found at: www.cesr-eu.org