Financial Services: Commission publishes the results of fitness check of supervisory reporting
European Commission services are presenting today the results of the so-called fitness check of supervisory reporting requirements in EU financial services legislation. The aim of this fitness check is to make EU supervisory reporting fit for the future. EU and national supervisory authorities need reliable data to effectively supervise financial institutions, monitor risks, ensure orderly markets, financial stability, as well as to protect investors and consumers of financial services in the EU. Results show that the supervisory reporting rules, which have been put in place since the financial crisis, have been effective in delivering the necessary data. However, the assessment also shows that reporting is not as efficient as it could be. There are inconsistencies between reporting rules, which do not only increase the administrative burden for financial institutions and other market participants but also reduce the quality and usability of the data for supervisors. Additionally, the recent trend towards data-driven supervision and advances in big data technologies will require more high-quality and granular data going forward. Targeted improvements are already under way – and in some cases have already been completed – as part of sectoral reviews of EU legislation and other initiatives. The fitness check also highlights the need for a comprehensive approach by the Commission, together with the relevant stakeholders, to further streamline the requirements and develop supervisory reporting that is fit for the future. This will require improvements in different areas, including: the legislative process for setting reporting rules; the review and justification of the data needs and uses by supervisors; consistency and harmonisation, including common terminology, data standards, formats and identifiers; governance, coordination and cooperation between the authorities, also when it comes to data re-use and data sharing; and the use of technological solutions for regulation and supervision. The fitness check is a follow-up to the Call for Evidence of EU financial services regulation and part of the Commission’s wider commitment to reduce the administrative burden and make EU rules more future-oriented. See here the Staff Working Document on fitness check of supervisory reporting.