Lisbon comitology in practice – a Commission perspective on the financial services sector Jan Ceyssens European Commission – DG Internal Market and Services 6 March 2013

2 Structure of the presentation Background – financial services & comitology The case of technical standards developed by the European Supervisory Authorities Practical experience 3/2/2012

Background (1): Financial services & comitology Lamfalussy process - Strong need for technical input to achieve regulatory harmonisation => Implementation of Action Plan (FSAP) by way of framework directives, implemented by comitology measures Mostly regulatory measures - Pre-Lisbon mainly regulatory procedure with scrutiny/PRAC 27/01/2012 3

Background (2): EU financial services agenda Response to crisis developments: => Major regulatory overhaul to strengthen EU financial services regulation (basis: G20) => Objective of a single rulebook Regulatory divergences had contributed to weak supervision Banking Union – joint supervision requires joint rules => New European Supervisory Authorities – institutionalised expertise 27/01/2012 4

Technical Standards Development of Technical standards to ensure - consistent harmonisation - uniform implementation of EU financial services legislation New task conferred to ESAs Single Rule book

Technical standards - Scope For purely technical matters, the development of which: does not involve strategic decision or policy choices requires the expertise of supervisory experts For other matters: "ordinary" DA/IA procedure

Technical standards - Scope Regulatory TS Develop, specify, establish the conditions for consistent harmonisation of EU rules EX: Specify information to be notified to competent authorities Implementing TS Set conditions for the uniform application of EU rules EX: Establish standard forms, and procedures for the transmission of information to competent authorities Delegated acts Implementing acts

Technical Standards - procedure 1) Development of draft standards by the ESAs in areas specified in EU law 2) Endorsement by the Commission as regulatory or implementing technical standards 3) Adoption by means of regulations or decisions

Technical standards – Procedure Development of draft TS by ESAs Respect of better regulation principles -Open public consultation -Impact assessment -Opinion of stakeholders groups Submission to Commission Forward to Council and EP

Technical standards – Procedure Endorsement & adoption by Commission within 3 months If partial or no endorsement : back to the ESAs => Differences may be discussed with EP If endorsement: adoption (for IA NO comitology) For regulatory TS: -Council or EP may object (objection periods: if COM endorses: 1 plus 1, otherwise 3 plus 3)

Practice (1) – state of play Almost all legislative acts under review Empowerments in force and Delegated acts/Implementing acts adopted in the following areas: => Credit Rating Agencies => Securities Prospectus => Short selling => Alternative Investment Funds => Derivatives (EMiR) And much more in the future…

Practice (2) - empowerments - Normally follow common understanding, but with some specificities on the objection period (1 plus 1 for TS – 3 plus 3 for other acts) - - Discussions in Council/EP on choice of procedure (DA/IA/TS)

Practice (3) - preparations Legal deadlines: short deadlines for adoption set in legislative acts => challenge for ESAs, COM and EP Consultations: commitment under Declaration No. 39 / common understanding / EP-COM agreement => for BTS considered to be fulfilled => for other delegated acts newly set up expert groups – EP may request presence (EP/COM agreement)

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