1. Eddy Wymeersch

2. Banking Systemic risk – strengthening solvency and liquidity of the bank strengthening the banks own funds: Basel III and CRD IV remuneration: make it less short term to reduce systemic risk crisis resolution systems Liquidity rules prepared in Basel

3. Orderly functioning of markets AIFMD Short selling Derivatives Post trade in securities securities law further work on C&S Mifid: market structure MAd, PD, TD reviews etc

4. Insurance Roll out of Solvency II, advice by CEIOPS Insurance mediation Insurance guarantee schemes

5. Major regulatory reforms Banking Capital Requirements Directive III/IV countercyclical buffers new capital requirements CEBS work streams Crisis management in the banking sector: crisis resolutionwith haircuts proposed by Comm. but Parl. proposals in Germany DGS new style can we move to a European Fund? or a system of mutual support by the existing funds

6. Major regulatory reforms Securities CRA changes approved: direct supervision by ESMA AIFMD: approved ESAs: approved Short selling: in Council Review of MAD, PD, TD and Mifid: consultation Post trade: EMIR, European Securities law:ongoing Corporate governance Financial Institutions: cons.closed later general corporate governance Prips: consultation Audit: consultation closed

7. Securities Derivatives identify the derivatives that should be cleared general obligation to clear, unless taxed in own funds organisation and safeguards for CCPs legal status: banks, who will supervise TR: what has to be registered and what not? Supervision US links: reciprocity Corporates: exempted if below floor

8. AIFM Broad scope: all managers of collective investment are subject exc. banks, insurance (?) holding companies, family offices Registration of the managers, not of the funds Passport for funds by EU registered managers

9. AIFM Points of contention remuneration: similar to banks depositary: with full restitution liability, but for sub depositaries only for due diligence evaluator Conduct of business rules on conflicts of interest Third country regime: very complicated but no full access to third AIFM/AIF

10. Short selling applicable to all instruments Short sale also derivatives if related to decrease of price sovereign bonds: includes CDS Net short: Long minus Short of all kinds Obligations disclosure at 0,2% to Supervisors,+ 0,1% of issued capital at 0,5% to market

11. Short selling Sovereign debt net short uncovered position, no relation with that St debt minimum threshold: to be fixed later, variable Notification Applicable also outside the Union

12. Short selling permissible shorts only if: borrowed agreement to borrow located pursuant to agreement Measures against late settlement Buy-in procedures within 4 days: buy-in by CCP or trading venue if non: cash compensation to buyer by CCP/trading venue if not: daily payments to CCP or Trading venue Exemption for market makers/primary markets

13. Short selling Significant fall in price exceptional power to restrict for significant fall in prices 10% national decision but coordination by ESMA including market making

14. Corporate Governance Consultation is closed: applicable to financial institutions, later to all listed companies Supervisory role of independent directors New role for shareholders Insurance and asset managers: recent reforms: are these not enough?

15. CG in Financial institutions Limit number of mandates per person: devote sufficient time Split Chairman – CEO Diversity in board, including gender diversity Compulsory evaluation Skill and experience Risk- audit committees: 1 or 2? cross participation CRO: stronger position Much attention to risk management and controls

16. CG in Financial institutions Serious offences: to be reported to the board? – Whistle blowing Institutional investors: disclosure voting practices Identification of shareholders and empty voting Remuneration policies Involve shareholders and employees? Conflicts on interest: how to deal with it Shareholders: long term investors preferred

17. ESMA Regulation final 9 November 2010 not yet published Three parallel authorities-agencies + ESRB Start 1 January 2010 Structure: similar to CESR: substantial powers with the national supervisors Legal powers quite limited

18. Regulatory powers in AIFMD Level 1: Directive-Regulation in co- decision Level 2: Delegation to Commission de facto advice of ESMA, but proposal by Comm. subject to art 190 of TFEU call back by EP or Council revocation of delegation of Council or EP

19. Regulatory powers in AIFMD Level 2 Delegated Acts art 290 TFEU Proposal by ESMA for Regulatory Technical Standards and Endorsement by Commission No Commission own initiative, except refusal to act by ESMA Commission can endorse, refuse to endorse, modify, substitute

20. Regulatory powers in AIFMD Level 2 Implementing Acts art 291 TFEU ESMA proposal and Commission endorsement No Commission own initiative Commission can endorse, refuse to endorse, modify substitute No formal intervention of Council or Parliament Mostly formalities, formats, procedures Directive must identify “delegated” or “implementing" acts

21. Soft powers Guidelines in many fields not necessarily secondary questions: matters too difficult to formally regulate matters with differences op opinions matters subject to further developments not legally binding but authority rests on consensus by members, flexibility in practice indicates likely interpretation by national supervisors useful for markets

22. Mediation Differences of opinion between national supervisors ESMA mediation panel: Chair + 2 members Finding a compromise solution, if not binding decision Mostly narrowly described: but see art 53 Especially in process of identifying who will be in charge of non-EU AIF: “MS of reference”, “equivalence” e.g. of FATF regime (art 35. 2 and 15) Practical importance: unpredictable

23. Prohibition of certain instruments art 45 See art 6 a of the ESMA regulation prohibit distribution of non authorised non-EU funds restrictions for excessive concentration in cross border cases restriction for counterparty risk Only in case of orderly functioning and integrity financial stability

24. Right of Appeal Appeal against decision of nat. supervisors Before national courts for all negative decisions (refusal, withdrawal) Decision to be properly reasoned Administrative decisions to be taken within 6 months, if not: appeal, but against what?

25. Right of Appeal Against ESMA individual decisions: before Board of appeal of the three ESAs Not for regulations: preparatory act before Comm. endorsement Appeal suspends and remand to ESMA Appeal decision is binding on national supervisors Anyone affected by a decision can appeal.

26. General powers Cooperation among supervisors information exchange standard notifications cross-border supervision with non EU supervisors Central Registry of AIFM/ AIF also list of rejected applications: art. 37(10) Convergence of supervisory practices coordination task e.g. on leverage restrictions Nothing about colleges

27. Conclusion Much work ahead ! What will the new Authorities become? Overregulation? more or less in line with US Will it save us from the next crisis?