CEBS expert groups and task forces in

Expert Group on the Capital Requirements (EGCR)

Chair Thomas Huertas Financial Services Authority (United Kingdom)

Groupe de Contact (GdC)

Chair Jukka Vesala

Rahoitustarkastus (Finland)41

Expert Group on Financial Information (EGFI)

Chair Arnoud Vossen

De Nederlandsche Bank (The Netherlands)

Review Panel (Peer Review)

Chair Andrzej Reich Polish Financial Supervision Authority (Poland)

Joint CEBS-CEIOPS Interim Working Committee on Financial Conglomerates (IWCFC)

Chair Arnold Schilder (CEBS), De Nederlandsche Bank (The Netherlands) Vice Chair Patrick Brady (CEIOPS), Financial Regulator (Ireland)

41 Previous Chairs of Expert Groups in 2007: Helmut Bauer, Bundesanstalt für Finanzdienstleistungsaufsicht-BaFin, Germany (GdC and TFCM); Kerstin af Jochnick, Finansinspektionen, Sweden (EGCR); Thomas Huertas, Financial Services Authority, United Kingdom (CoTF); Lars Nyberg, Riksbank, Sweden (TFCM); Gerhard Hofmann, Deutsche Bundesbank, Germany (TFICF); and Michel Flamée, Commission Bancaire, Financiere et des Assurance, Belgium (Vice Chair of IWCFC)

Joint Task Force on the Impact of the new Capital Framework (TFICF)

Workstream A: Erich Loeper, Deutsche Bundesbank (Germany)

Workstream B: Mauro Grande, European Central Bank (ECB)

Joint Anti Money Laundering Task Force (AMLTF)

Chair Andrea Enria, Secretary General, CEBS

3L3 Steering Committee on Training

Chair Michel Prada (CESR), French Securities Markets Authority, (France)

Convergence Task Force (CoTF)

3.1.1.1 Groupe de Contact

The Groupe de Contact (GdC) assists CEBS in carrying out its work programme in the areas of operational networking, the exchange of information, and promoting convergence in practical implementation issues. In particularly, it: • Supports CEBS in promoting consistent implementation

of community legislation and convergence in prudential supervisory practices. This is complemented by the development of real-life case studies on the use of supervisory methodologies and procedures;

• Steers the development and the efficient functioning of networks for convergence and cooperation between EU banking supervisors, the promotion of the efficient functioning of supervisory colleges along with general home-host cooperation, and the prompt identification and solution of issues arising in the supervision of cross-border groups;

• Ensures intensive exchanges of information on supervisory policies and practices and regular

confidential discussions (including case studies and risk assessments) on specific institutions or groups and other relevant issues;

• Monitors the operation of the supervisory colleges. The GdC develops practical tools for achieving convergence in supervisory policies and practices and maintaining CEBS guidelines and standards in these areas, including supervisory review (Pillar 2) and supervisory cooperation, by monitoring their implementation and proposing amendments to guidelines where appropriate; • Assists CEBS in providing advice to the Commission on

draft EU legislation and other Commission initiatives in the areas of supervision and supervisory cooperation. The GdC contributed to CEBS’s responses to the European Commission’s Calls for Advice on liquidity risk management. The GdC also worked on the Call for Advice on the extent to which the US and Swiss supervisory regime achieve the objectives of consolidated and supplementary supervision, as provided for in the CRD and the FCD, and thus whether

EU supervisors can rely on equivalent consolidated supervision in those countries in relation to EU subsidiaries and branches. The response to this Call for Advice was prepared jointly with the IWCFC. The GdC has also worked on other issues such as enhancing the functioning of the colleges of supervisors, delegation, crisis management, Pillar 2, passporting, cross-border mergers, and acquisitions. 3.1.1.2 Expert Group on Capital Requirements

In 2007, the work of the Expert Group on the Capital Requirements (EGCR) was marked by the preparation of CEBS’s responses to the European Commission’s Calls for Advice on Large Exposures, Own Funds, Commodities Business, and Options and National Discretions. As members begin shifting from transposition and implementation of the CRD to its practical application, the convergence networks on credit risk and operational risk (NOVI-O and NOVI-C) are expected to gain in significance as forums for information exchange, the identification of implementation issues, and the development of common approaches. The focus of the EGCR, in turn, is expected to shift from monitoring supervisory and industry practices related to the capital requirements to a more proactive approach and the development of common supervisory policies.

3.1.1.3 Expert Group on Financial Information

The Expert Group on Financial Information (EGFI) assists CEBS in its work in the area of financial information, including accounting, auditing, supervisory reporting issues, and public disclosure and transparency issues. In particular, it: • assists CEBS in providing advice to the Commission on

draft EU legislation and other Commission initiatives on financial information;

• monitors and assesses developments in the area of financial information the EU and international level, and prepares CEBS input, proposals, and comments on these developments as necessary;

• provides a forum for discussion on the supervisory implications of developments in the area of financial information, and reports back to CEBS on these issues; and

• maintains CEBS guidelines and standards in the area of financial information (including the common frameworks for supervisory reporting - FINREP and COREP - and the related XBRL taxonomies) by monitoring their

implementation and proposing updates where appropriate. 3.1.1.4 Review Panel

In March 2007 the Convergence Task Force (CoTF) was mandated to deliver a proposal for a peer review mechanism for CEBS. After the CoTF was dismantled, in September 2007, a new expert group has been established: the Review Panel, chaired by the CEBS Vice-Chair. The Review Panel is expected to help monitor the implementation of the supervisory provisions set out in Community legislation and CEBS guidelines, to monitor convergence of supervisory practices with the goal of encouraging their timely and consistent day-to-day implementation, and to help foster supervisory convergence in the EEA. A test of the peer review mechanism was scheduled for the first six months of 2008, so as to be able to report on it at the FSC meeting scheduled for October 2008. This schedule is also consistent with the draft Council conclusions42_{on the 2007 Lamfalussy review,} which invite the Level 3 Committees to explore the possibilities for strengthening the national application of their guidelines, without changing their legally non-binding nature, by mid-2008. The first exercise is on the

implementation of validation of advanced approaches under the CRD (CRD and AMA - Guidelines 10), with a home/host perspective.