jean - claude trichet : the regulatory and supervisory reform in europe speech by mr jean - claude trichet, president of the european central bank, at the eurofi financial forum 2009, gothenborg, 30 september 2009. * * * ladies and gentlemen, it is a pleasure to be here among you and to say a few words of introduction before this distinguished panel. the purpose of my intervention is to lay out the main issues for our discussion. • substantive progress has been made in the regulatory and supervisory reform as a response to the financial crisis. a remarkable amount of technical work has been undertaken in a demanding timeframe. • all relevant initiatives have been coordinated globally, and the european union has been a frontrunner in a number key areas. let me mention three of them : credit rating agencies, hedge funds and compensation practices. • on credit rating agencies, the eu has already adopted regulation that will subject credit rating agencies to mandatory registration and oversight, to increase transparency and reduce conflicts of interest in the rating process. • with regard to hedge funds, the european commission has proposed a directive on alternative investment fund managers. this proposal, which is currently under debate, provides that alternative investment fund managers be subject to authorisation and harmonised regulatory standards, including minimum capital, as well as disclosure requirements. • on compensation practices, the european commission was among the first to incorporate in a directive the principles developed by the financial stability board ( fsb ) for sound compensation practices. moreover, the eu has been driving the international agenda in developing further implementation standards that will align compensation practices with long - term value creation, and discourage excessive risk - taking in the short - term. as a result, the g20 summit in pittsburgh calls on banks to defer bonus payments, disallow guaranteed bonuses, and introduce a claw - back clause. • overall, agreement has been reached globally on a comprehensive set of measures in response to the crisis. the capital framework has been strengthened by introducing stricter requirements for the treatment of securitisation exposures and off - balance sheet vehicles, as well as for credit risk in the trading book. disclosure requirements have been improved, to reduce uncertainty about banks ’ overall exposures in these areas. guidance has been published to address the shortcomings in banks ’ risk management practices. finally, international cooperation has been very strongly reinforced and supervisory colleges for large complex financial groups have been established. while a lot has been achieved, a lot remains to be done. this is no time for

which will be presented here will analyse the role of income, home ownership and house price dynamics, household structure and intergenerational transfers in this process of wealth accumulation. i hope the exchange of ideas that will take place in the next two days will help us to further our understanding of how households manage their finances in a complex and uncertain world, to draw useful policy lessons and prepare for the next waves of the survey. and i hope this conference will spur research in this exciting field, from which we all, researchers and policy - makers alike, have so much to learn. thank you very much for your attention. eurosystem household finance and consumption network ( 2013 ), “ the eurosystem household finance and consumption survey. results from the first wave ”, statistical paper series, no 2, april. bis central bankers ’ speeches