By Martin Banks - 1st February 2011
There is no one size fits all solution
Gabriel Bernardino
The official who is expected to chair the EU's new insurance authority has set out his stall for the job, telling MEPs there is no "one size fits all" solution to supervision of the financial markets.
Portuguese regulator Gabriel Bernardino is set to chair the European Insurance and Occupational Pensions Authority (EIOPA), one of three new authorities being set up by the EU in the wake of the economic crisis.
The Frankfurt-based regulator was established last month under the EU's new financial-regulation framework.
It is one of three new supervisory authorities, the others being the European Banking Authority and the European Securities and Markets Authority - all of which have replaced previous advisory bodies.
The new watchdogs are expected to have sharper teeth, with the ability to enforce more coordination between national regulators in their sectors.
However, some MEPs, who must approve the candidates in nomination hearings, have expressed disappointment with the depth and quality of the shortlisted candidates and the overall level of interest.
On Tuesday, Bernardino appeared before parliament's economic and monetary affairs committee where he was closely quizzed about his plans and priorities.
Responding to a question from French EPP deputy Jean-Paul Gauzès who questioned whether Bernardino had the "necessary authority" for the job, he said he wanted to assure members that he believed he had the "seniority and experience" for the post.
Bernardino replied, "If EIOPA is going to be the success story I hope it will, then you need someone who speaks the same language as those you are supervising. I believe I meet that criteria."
He said that EIOPA presented a "huge opportunity" to build a "new approach" to financial supervision, saying the authority will bring "added value" to insurance and pensions regulation.
He said, "If approved, I will bring action and vision to this role, but I accept there are various challenges to overcome, including the necessity for greater independence. We also need a good and robust system of governance for the financial sector.
"Yes, this is a new process that we are embarking upon, but it is one that I want to see driven by best practice."
He said EIOPA's top task is to implement sweeping new rules known as solvency II to protect consumers by ensuring a better match between insurers' capital safety cushions and the risks they have on their books.
He added, "The three authorities are separate, but it is important that we work together to achieve these improvements. There is no one size fits all solution to all that is wrong in the sector and you cannot always adopt banking solutions for everything.
"While I aim to be the 'voice' for insurance and pensions regulation, I hope we can work together."
Bernardino, who is 46, chaired EIOPA's forerunner, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS), from October 2009 to December 2010.
He is currently the director general of the directorate for development and institutional relations at Portuguese insurance and pensions regulator ISP.
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