By Simon Miller
Financial services associations have written to European officials warning that the upcoming european supervisory authorities (ESAs) would be unable to cope with the reams of regulation coming onboard in Europe.
In a letter to EC Commissioner Michel Barnier, Danish finance minister Bjarne Corydon and Economic and Monetary Affairs Committee chairman Sharon Bowles, the seven associations - which includes the International Swaps and Derivative Association and the European Banking Federation - said they supported ESAs as "a further step towards the deepening of the EU single market in financial services".
However, they were concerned that as ESAs approached critical rule-making mandates that the authorities were given the time and opportunity to succeed.
"We fear that the ESA's ability to address their responsibilities for drafting these standards,as well as properly assessing their impact, may be undermined by current circumstances," the associations wrote.
They added: "Legislation such as the European Market Infrastructure Regulation and the Regulation on CDS and Short Selling requires [The European Securities and Markets Authority] to adopt implementing and technical measures withing very short timeframes. Such demands jeopardise the goal of drafting high quality and credible regulation."
The letter can be read here