Embedding financial innovation governance into legislation – the European Banking Authority (EBA)

Financial-Reform1

The European Banking authority is one of the few regulatory bodies that have recognized the need to embed financial innovation governance into legislation. See news items below:

Financial Innovation and Consumer Protection

01 February 2012
The EBA publishes today an overview of the objectives and work of the EBA’s Standing Committee on Financial Innovation (SCFI) in 2011-2012 in the area of consumer protection and financial innovation.

The regulation establishing the European Banking Authority (EBA) requires the establishment of a Committee on Financial Innovation (article 9). The main objective of the EBA‟s Standing Committee on Financial Innovation (SCFI), which was established in May 2011, is assisting the EBA in fulfilling its mandate in the areas of financial innovation and consumer protection, as described in article 9 EBA regulation.

From 2012 onwards, the EBA will publish a yearly report, prepared by the SCFI, identifying areas of concern in both the consumer protection and financial innovation areas of the banking sector, as well as areas where these two intersect. This will include recommendations to EBA‟s Board of Supervisors (e.g. for EBA to do further work or to take corrective or restrictive action), to national supervisory authorities (e.g. to further examine or address an issue locally), or to the Commission (e.g. for regulation).

The European Banking Authority was established by Regulation (EC) No. 1093/2010 of the European Parliament and of the Council of 24 November 2010. The EBA has officially come into being as of 1 January 2011 and has taken over all existing and ongoing tasks and responsibilities from the Committee of European Banking Supervisors (CEBS). The EBA acts as a hub and spoke network of EU and national bodies safeguarding public values such as the stability of the financial system, the transparency of markets and financial products and the protection of depositors and investors.

Source:http://www.eba.europa.eu/Publications/Consumer-Protection-issues/Financial-Innovation-and-Consumer-Protection.aspx

Link to overview of work report: http://www.eba.europa.eu/cebs/media/Publications/Consumer%20Protection/EBA-BS-2012-003-Financial-Innovation-and-Consumer-Protection–Overview-of-EBA-work-in-2011-2012.pdf

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