The New EU Financial Regulatory Framework

Following a meeting of the Economic and Financial Affairs Council ("ECOFIN") on 7 September 2010, the Council of the European Union ("EU") announced¹ that it has endorsed the agreement reached with the EU Parliament on 2 September 2010² on reforming the EU financial supervisory framework.

Their "agreement in principle" was outlined in a report of the EU Council dated 6 September 2010 on "Financial Supervision Reform,"³ and covered the following areas:

• The text of the draft Regulations concerning the European Systemic Risk Board ("ESRB") and the European Banking Authority ("EBA");
• The alignment of the text of the draft Regulations establishing the European Securities and Markets Authority ("ESMA") and the European Insurance and Occupational Pensions Authority ("EIOPA") on the text agreed for EBA, with necessary modifications; and