New authority Eiopa will get greater powers than Ceiops
The new pan-European insurance regulator looks set to receive tough new powers to intervene in the affairs of individual companies.
Under an agreement concluded between the European parliament and EU member states last week, the European Insurance and Occupational Pensions Authority (Eiopa) will be able to impose supervisory decisions on financial institutions.
Eiopa, which will replace the more loosely structured Committee of European Insurance and Occupational Pensions Supervisors, is one of a number of new regulators to be established under the shake-up of financial services regulation.
As a result of the agreement, Eiopa and the other new regulators will have powers to intervene in companies’ affairs if national supervisors have failed to act to remedy breaches of EU law.
They will also be able to impose legally binding mediation on national regulators if they disagree on the regulation of cross-border financial institutions.
The arrangements, which face ratification by the European parliament later this month, are due to be up and running by January 2011.