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UNI Europa has welcomed the European Ombudsman’s criticism of the way the European Banking Authority (EBA) appointed its key advisory group, the Banking Stakeholder Group (BSG), in 2011.

The Ombudsman’s reply follows complaints from UNI Europa dating back to 2011 that the selection of Banking Stakeholder Group members was not done according to the legal obligation to ensure a balanced proportion between industry and non-industry interests. Non-industry representatives were clearly under-represented with only one employee representative and the category “users of banking services” made up of representatives from organisations providing services to banks, rather than actual retail users, as defined in the Regulation.

The Ombudsman, Emily O’Reilly, has now said that the EBA has committed instances of maladministration in its selection of BSG members, with specific reference to the under-representation of employee representatives. The group should, as far as possible, be appropriately and accurately representative of the different categories as well as of Europe’s geographical and gender balance. She has asked the EBA to clarify how it had improved the process in selecting new BSG members appointed in October 2013.

 UNI Europa’s Regional Secretary, Oliver Roethig stressed the good cooperation that UNI Europa has had bilaterally with the EBA and called on EBA to ensure that its key advisory group represented a wider European constituency:

“The European Banking Authority has a responsibility to ensure that a range of financial services stakeholders from across Europe are heard,” said Roethig, “On several occasions, Commissioner Barnier and President Barroso have stressed the importance of stronger involvement of non-industry stakeholders in expert groups and stakeholder groups related to European legislation and supervision. This needs to be shown in action. It is the way to restore trust in the European financial sector and to move towards a banking system that is seen to have the interests of ordinary Europeans at heart.”

“Even though having two employee representatives in the newly formed BSG is an improvement, as the Ombudsman recognises, “in balanced proportions” means at least three seats for employees. We therefore hope that the EBA has taken the Ombudsman’s criticism on board and look forward to hearing how it in the future will secure an overall balanced representation with at least three seats for employee representatives.” 

The EBA was established in 2011 in London to ensure effective and consistent regulation and supervision across the European banking sector. Before adopting standards, guidelines, and recommendations, the EBA is obliged to consult its Banking Stakeholder Group. This group consists of 30 representatives from the banking industry, employees’ representatives and trade unions, as well as consumers, users of banking services, and SMEs.

UNI Europa has also filed a complaint with the European Ombudsman against the European Securities and Markets Authority (ESMA) and its stakeholder group, where in 2011 no seat was given to a genuine employee representative.  Candidates supported by the European trade union movement were ignored and ESMA has not set up any kind of dialogue with UNI Europa. Its approach is unacceptable and ignoring its legal obligations.

The European Ombudsman’s reply is available at: www.ombudsman.europa.eu