EU leaders say the agreement gives them the tools to “better control financial players”
The European Union has reached agreement on reforms to financial supervision, officials have said.
EU states and the European Commission agreed to create agencies that from next year are to oversee banks, insurers, and financial markets.
The deal must still be approved by European finance ministers and the European Parliament.
Europe’s move follows the sweeping Wall Street reforms that President Barack Obama signed into law in July.
It is hoped the agreements in Europe and the US will help stop a repeat of the financial crisis in which loose supervision of companies was blamed for contributing to problems.
Michel Barnier, European Internal Market Commissioner, said after the deal was agreed late on Thursday: “We have reached a crucial milestone. We have reached a political consensus on the creation of a European financial supervisory framework.”
The agreement also creates a European Systemic Risk Board with the task to look out for threats to Europe’s economy from the financial sector.
“This is very complex multi-layered legislation… It is a pragmatic compromise”
Vicky Ford MEP Conservative monetary affairs spokeswomen
Mr Barnier said the new agencies would give Europe “the control tower and the radar screens needed to identify risks, the tools to better control financial players and the means to act quickly, in a coordinated way, in a timely fashion”.
If the agreement is ratified, the EU hopes to launch the new agencies in January.
Negotiations between EU states had stalled because of differences over how much power the agencies should have.
There had also been criticism from America that Europe was too slow in beefing-up supervision.
Britain had fought to limit the power of the agencies, believing that they should not interfere with a state’s sovereignty.
However, as details of the agreement began to emerge on Thursday, it appeared that a compromise had been reached on the issue.
Conservative economic and monetary affairs spokeswoman Vicky Ford, MEP, who took part in the negotiations, said: “The new structures will allow better coordination of financial services supervisors across Europe, thus protecting consumers from cross-border crises that we witnessed.
“At the same time national governments and national regulators keep their frontline responsibility to protect national tax payers’ interests,” she said.
She said EU states had reached a “pragmatic compromise” on “very complex multi-layered legislation”.
A UK government spokesperson welcomed the deal, saying it was “a very good outcome for the UK, fully reflecting the priorities secured by” Chancellor of the Exchequer George Osborne.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Mr Hadfield became the first Canadian to perform a spacewalk in 2001
Astronaut Chris Hadfield will become the first Canadian commander of the International Space Station in 2013, the Canadian Space Agency announced.
Mr Hadfield will blast off on his third trip into space on a Russian spacecraft with five others in December 2012.
The 51-year-old will take control of the station during the second half of a six-month trip.
As commander, Mr Hadfield will be responsible for the crew’s safety and operations on the station.
The veteran astronaut will also work as a flight engineer onboard the station during the first four months of the trip, while carrying out scientific experiments, robotics tasks and technology demonstrations.
During a trip to the ISS in 2001 to deliver and install a robotic arm, Mr Hadfield became the first Canadian to perform a spacewalk.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

A tanker carrying 9m litres (2.4m gallons) of diesel fuel has run aground off the coast of northern Canada, the Canadian Coast Guard has said.
The vessel, owned by Woodward’s Oil, hit a sandbar in the Northwest Passage, south-west of the community of Gjoa Haven in the Nunavut federal territory.
No diesel is believed to have been spilt, Coast Guard officials told CBC.
The Canadian authorities are reportedly working with Woodward’s Oil to get the tanker floating again, they added.
The Coast Guard told CBC that it was too early to tell when the ship, which was supplying remote communities in the region, would be able to move.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

A tanker carrying 9m litres (2.4m gallons) of diesel fuel has run aground off the coast of northern Canada, the Canadian Coast Guard has said.
The vessel, owned by Woodward’s Oil, hit a sandbar in the Northwest Passage, south-west of the community of Gjoa Haven in the Nunavut federal territory.
No diesel is believed to have been spilt, Coast Guard officials told CBC.
The Canadian authorities are reportedly working with Woodward’s Oil to get the tanker floating again, they added.
The Coast Guard told CBC that it was too early to tell when the ship, which was supplying remote communities in the region, would be able to move.
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Energy suppliers’ tactics have been under the microscope
Four of the “big six” UK energy suppliers are to be investigated amid concerns of mis-selling to customers, the regulator has announced.
Npower, Scottish Power, Scottish and Southern Energy, and EDF Energy all face questions over face-to-face and telephone sales of energy contracts.
Ofgem said it had received information from a variety of sources suggesting they could have breached new rules.
The quartet said they would work with Ofgem on the investigation.
Research by the regulator in 2008 found that, of those who switched their energy supplier, more than half did so in response to contact with a salesman.
But it found that many who switched following doorstep sales ended up on a more expensive tariff because they were misled, or found it difficult to compare bills.
As a result, Ofgem brought in new regulations at the end of last year aimed at tightening up the sales process. The new requirements included:
supplying a customer with an estimate before any face-to-face sales are concludedgiving, in most cases, a comparison between the new offer and the customer’s current dealactively preventing mis-selling to customers on the doorstep and over the telephone.
The four energy companies face an investigation into whether these new licence agreements have been breached.
“We expect all suppliers to comply with these tougher obligations, but if our investigations find otherwise, we will take strong action,” said Andrew Wright, of Ofgem.
The regulator has the power to fine a company up to 10% of its turnover if a breach is discovered.
Previously, under the preceding misselling rules, Ofgem fined Npower £1.8m in 2008. London Electricity – now part of EDF Energy – was fined £2m in 2002.
Views expressed by the four energy companies suggest they will vigorously refute any claims of mis-selling.
David Mannering, the corporate economic regulation director at Npower, said: “We fully support Ofgem in making sure that customers clearly understand the products on offer to them and we are confident that the processes we have in place mean that we comply with our regulatory obligations.”
Scottish Power has the highest proportion of complaints per 100,000 customers made to advice line Consumer Direct this year. However, not all of these complaints are necessarily justified, as they are just the view of the consumer.
Its spokesman said the company would answer questions raised by Ofgem.
“Scottish Power insists on the highest standards possible for all of our sales agents, and invests heavily in training and development to maintain these standards,” he said.
EDF Energy said that it believed it was fully compliant with the rules, and trained its staff fully, including refresher briefings. All new sales were verified by telephone to confirm the customer’s intention to switch.
And SSE said it believed it was complying with the new rules.
“As a responsible company we take seriously all our customers’ issues and would ask any prospective or existing customer to contact us if they are concerned, and we will work with them to resolve the situation,” SSE said.
Christine McGourty, director of Energy UK, which represents the leading gas and electricity companies, said: “The companies involved will collaborate fully with the Ofgem investigation and are awaiting further details from the regulator.
“The new regulations that cover doorstep selling are part of the industry’s EnergySure Code of Practice and members undergo a rigorous independent annual audit to ensure all the obligations are being met.
“Any sales agent in breach of the code will be struck off the approved energy sales register. Companies take their customers’ concerns seriously and would urge customers to call them directly with any concerns they have.”
Meanwhile, Ofgem is urging any householders who believe they have been mis-sold energy on the doorstep or on the telephone to report the case to the Consumer Direct hotline by calling 08454 040506 and choosing option one.
However, the current system still encourages mis-selling, according to Audrey Gallacher, of watchdog Consumer Focus.
“Complaints have declined since new rules came into effect this year, but suppliers still seem to be flouting the rules,” she said.
“Some customers are still being given misleading quotes and information, which leave them worse off when they switch provider.
“While many doorstep sales people will do a good job, the pay and rewards system continues to encourage mis-selling, despite years of regulation and voluntary initiatives.
“If better advice for customers and enforcement of the tougher rules doesn’t end the flagrant abuse of this form of selling, the big question will be whether it should be completely banned.”
This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
