The European Council's Conclusions back in June that improved financial supervision is necessary have been supported by BUSINESSEUROPE and financial market players.

The European Banking Federation (EBF), the European Federation for Retirement Provision (EFRP), the European Private Equity and Venture Capital Association (EVCA), the Federation of European Accountants (FEE), the Federation of European Securities Exchanges (FESE) and BUSINESS EUROPE have voiced their support for a reinforced European Financial Supervision system. The Conclusions said that the financial crisis had highlighted the necessity for reinforced cross-border oversight and the development of effective early warning systems.

The European Union's (EU) suggestion that a European Systemic Risk Board (ESRB) be created, which would have a sound governance structure, and of a European System of Financial Supervisors (ESFS), is, the group believes, a positive step forward from the current institutional system.

The market players also stated that the improved European Financial Supervision be strengthened by underlying principles and objectives, such as the elimination of harmful national divergences in supervision and the creation of a level playing field, the promotion of high quality principles-based global standards, and market transparency and accountability.

The statement also refers to the improvement of cross-border oversight and trust-building amongst supervisors: 'progress will also be needed on cross-border early intervention and common burden sharing criteria in the event of a crisis and lender of last resort situations'.

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