Progress on implementation of the FCD, which came into effect last year, is being hampered by the lack of a key decision from the European Commission, the European Unionâs Brussels-based executive arm that initiates EU-wide financial regulation. The Commission has still to decide whether to create a separate so-called âlevel 3â committee for conglomerates, EU regulatory sources say.
Level 3 committees, such as the Committee of European Banking Supervisors, or CEBS, comprise relevant top supervisors and experts from EU member states. They advise the Commission on the technical aspects of financial regulation and are chiefly responsible for overseeing the implementation in the 25-nation EU bloc of subsequent directives, or laws.
The Commission has given the go-ahead for the existing three level-three â 3L3 â committees to set up a joint interim committee to help handle FCD implementation. The new groupâs first task will be to assess the current state of play on implementation and help with the consistent application of the directive.