UK wants mandatory supervisory colleges

The UK has called on Europe to mandate for supervisory “colleges” to oversee cross-border groups in response to the recent turmoil in financial markets. In a letter to the Slovenian president of Ecofin, UK Chancellor Alistair Darling said co-operation arrangements between supervisors in their regulation of European financial services firms must be improved. He said that legislation should be introduced in Europe to establish the colleges for all cross-border firms operating in insurance, securities and banking, adding that the G7 and Financial Stability Forum should also consider how to improve cross-border co-operation.