The Committee of European Banking Supervisors (CEBS) today publishes its consultation paper (CP35) on its draft guidelines on the management of operational risk in market-related activities. The consultation is open to all interested parties, including supervised institutions and other market participants.
Following the publication of CEBS’s high level principles on Internal Governance (CEBS Guidelines on the Application of the Supervisory Review and Evaluation Process- Section 2), its draft high level principles on risk management and its high level principles on remuneration policies, CEBS now introduces more specific principles and implementation measures for the identification, assessment, control and monitoring of operational risk in market-related activities.
CEBS draft principles are divided into three different parts, addressing the management of operational risk in market-related activities from three different angles:
• Governance mechanisms - principles 1-5;
• Internal controls - principles 6-15; and
• Internal reporting systems - principles 16-17.
CEBS expects its members to have implemented the guidelines by December 2010. An implementation review will be undertaken by the CEBS secretariat in the first quarter of 2011.
CEBS submits its initial views for a public consultation which starts today and runs until 31 March 2010. Comments received will be published on CEBS’s website unless respondents request otherwise. Please send your comments to the following email address: cp35@c-ebs.org.
A public hearing will be held on 9 March 2010 at CEBS’s premises in London to allow all interested parties, including supervised institutions and other market participants, to put forward their views on the consultation paper. More details regarding this hearing will be provided in due course.
The European Banking Authority was established by Regulation (EC) No. 1093/2010 of the European Parliament and of the Council of 24 November 2010. The EBA has officially come into being as of 1 January 2011 and has taken over all existing and ongoing tasks and responsibilities from the Committee of European Banking Supervisors (CEBS). The EBA acts as a hub and spoke network of EU and national bodies safeguarding public values such as the stability of the financial system, the transparency of markets and financial products and the protection of depositors and investors.