Better Finance scolds new composition of EU supervisors' stakeholder groups
The European federation of retail investors, Better Finance, has criticised the new composition of stakeholder groups at the European supervisory authorities, branding it “a step backwards with regard to a balanced representation between industry and consumers in EU financial rulemaking.”
Stakeholder groups, composed of 30 members representing all categories targeted by the EU financial regulation, meet on a regular basis to elaborate EU frameworks in the insurance sector, occupational pensions, banking services and securities markets. As a consequence of a recent reform of the ESAs, quotas of representatives from financial institutions, including industry and professional associations, increased at the expense of these of consumers and academics. Therefore, the share of appointed consumer and user representatives in the stakeholder groups decreased from 33% to 28% in total and that of independent academics from 17% to 13%, Conversely, industry representation (including professional associations) from 39% to 48%.
“This seriously hampers efforts to advocate for and defend non-industry interests. Adding insult to injury, the ESAs mis-appointed some non-consumer experts to the few allocated spots for consumer representatives, practically reducing the voice of EU citizens in the SGs even further,” Better Finance pointed out. The association's managing director Guillaume Prache said that “such a move represents a big step backwards, with a return to pre-2008 practices, when EU financial policymaking was mostly done between EU policymakers and lobbyists from the financial industry.”