One of EIOPA’s key responsibilities is to ensure coordinated crisis prevention and management, as well as to preserve financial stability in crisis situations. EIOPA views this responsibility as an integral part of ongoing supervisory activities and an important means of ensuring policyholder protection.
The Regulation establishing EIOPA allocates to the Authority the following tasks:
- In the event of crisis EIOPA should actively facilitate and, where deemed necessary, coordinate actions of the relevant national supervisory authorities;
- If EIOPA considers that an emergency situation may arise, it can issue a confidential recommendation addressed to the Council of the EU;
- If the Council declares the existence of an emergency situation and if certain conditions are met, EIOPA can adopt individual decisions that would require national supervisors to take necessary actions in order to address the emergency situation. If further conditions are met, the Authority can adopt an individual decision directly addressed to a financial institution requiring the necessary action to be taken;
- EIOPA should contribute to and participate actively in the development and coordination of effective and consistent recovery and resolution plans, procedures in emergency situations and preventive measures to minimise the systemic impact of any failure;
- EIOPA should work on identifying best practices aimed at facilitating the resolution of failing cross-border groups and other financial institutions in order to avoid contagion; and
- EIOPA should develop regulatory and implementing technical standards related to crisis management and resolution.
In 2011 EIOPA established a Task Force on Crisis Management (TFCM) aimed at putting in place and further developing the structures for EIOPA to deal with crisis situations. As the TFCM had carried out the primary tasks for which it was created by mid-2013, and that all remaining issues were either well advanced or could be channelled through other groups, the Board of Supervisors decided to dismantle the Task Force. The TFCM held its last meeting on 20 September 2013.