Page 77 - EBA 2015.1815 Annual report 2014 web 2

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2 0 1 4 a n n u a l r e p o r t
75
Cross-sectoral work,
external relations and
Communications
The EBA works closely with other ESAs in the
context of the Joint Committee. It also provides
technical advice to the Commission and regu-
larly interacts with the European Parliament
and Council to which the EBA is accountable.
In addition, the EBA’s press and communica-
tions function ensures all parties concerned
with the work of ESAs are kept fully informed
of points of interest or concern.
Overview of cross-sectoral work in the
context of the Joint Committee of the
ESAs
In 2014, the Joint Committee continued its
work as a forum for cross-sectoral coordina-
tion and exchange of information between the
ESAs. Under the chairmanship of the EBA in
2014, the Joint Committee focused in particu-
lar on the subjects of cross-sectoral risks, in-
cluding conduct of business risk, and on con-
sumer protection.
Analysis of cross-sectoral risks
The Joint Committee produced two joint re-
ports focused on identification of key cross-
sectoral risks and vulnerabilities in the EU
financial system, which were submitted to the
March and September meetings of Economic
and Financial Committee of the Council (EFC-
FST) and the ESRB, and subsequently pub-
lished on the websites of the ESAs.
The key risks identified included prolonged
weak economic growth in an environment
characterised by high indebtedness, intensi-
fied search for yield in a protracted low in-
terest rate environment, and uncertainties in
emerging market economies — all reflected
in the methodologies applied in the 2014 EU-
wide stress test exercises for banks and insur-
ance companies. In addition, the Joint Com-
mittee started to work on the topic of conduct
of business risk and IT/cyber risks which have
become ever more prominent in 2014.
The Joint Committee started analysing con-
duct of business risk, including operational
and governance issues, identifying possible
common EU policy responses and level play-
ing field issues, including on sanctioning and
enforcement as well as other applicable su-
pervisory actions.
Consumer protection (
25
)
In the area of consumer protection, the work
conducted has focused around a major regu-
latory mandate on PRIIPs, for which the main
deliverables are expected to come to matu-
rity in 2015 and 2016. In this context, the Joint
Committee published in November 2014 a
Discussion Paper on KIDs designed to help
retail investors in the EU better understand
and compare PRIIPs across the EU as a first
major step of their work. In addition, three
other major products were finalised: (i) the
common Guidelines on complaints handling,
enabling EU consumers to refer to a single
set of complaints handling arrangements, ir-
respective of the type of product or service or
the geographical location of the firm in ques-
tion; (ii) a reminder to financial institutions re-
garding placements of own instruments with
retail customers, reminding financial institu-
tions across the EU about their responsibility
to comply with rules governing conflicts of in-
terest, remuneration, provision of advice and
suitability and appropriateness of products;
and (iii) common principles on product over-
sight and governance.
(
25
) See also the section on Consumer protection and
financial innovation on p. 70.