EIOPA ADOPTS PROCEDURES FOR WARNINGS AND TEMPORARY RESTRICTIONS/PROHIBITIONS TO ENHANCE LEGAL CERTAINTY

The European Insurance and Occupational Pensions Authority (EIOPA)
published today procedures for how it will issue warnings and temporary
prohibitions and restrictions regarding financial activities. The
procedures are a key component of EIOPA's strategic objectives in the
area of crisis management and consumer protection/financial innovation.

Under its founding Regulation, EIOPA may issue different types of
instruments where financial activities threaten EIOPA's objective to
contribute to the stability and effectiveness of the financial system. As
such, EIOPA can issue warnings in the event that a financial activity
poses a serious threat to its objectives. Moreover, the Authority may also
temporarily prohibit or restrict certain financial activities that
threaten the orderly functioning and integrity of financial markets or the
stability of the financial system.

The procedures have been adopted with a view to ensuring legal certainty in
the process of adopting any warnings or temporary
prohibitions/restrictions by establishing a basic framework for any future
action. In doing so, the procedures lay down the steps to be followed for
identifying threats and initiating the further assessment process within
EIOPA. Moreover, the procedures lay down the rights and obligations of the
addressees of any warnings or temporary measures, how such warnings and
measures will be communicated, their duration and review provisions.

The procedures outline the steps to be taken both in the case of warnings
and temporary prohibitions and restrictions. It is noted, however, that as
regards the temporary measures, the EIOPA Regulation foresees that such
measures can only be issued where sectoral legislation sets the specific
conditions for doing so. At the moment, there is no such sectoral
legislation in the insurance and occupational pension area.

The document can be viewed under the following link:
https://eiopa.europa.eu/activities/consumer-protection-and-financial-innovation/index.html
(Link:
https://eiopa.europa.eu/activities/consumer-protection-and-financial-innovation/index.html
)


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