FACTBOX-EU steps up pace on financial regulation

[Joanne98]

March 1 (Reuters) - EU leaders meet on Sunday to try to forge a common response to the financial crisis.

The EU executive, the European Commission, has been stepping up the pace on proposals for financial regulation reform to make markets safer for investors, but such plans could be held up by entrenched national differences.

Following are some of the proposals:

FINANCIAL SUPERVISION

A "high-level" group headed by former Bank of France Governor Jacques de Larosiere has recommended changes to financial supervision. EU leaders will discuss the proposals at a March 19-20 summit. For story double click on , Factbox Snap Analysis



TOXIC DEBT

The European Commission has published guidelines for banks and financial institutions to deal with toxic assets such as mortgage-backed securities. For story click on



BANK CAPITAL RULES EU states have adopted a preliminary reform of the bloc's bank capital requirements, or Basel II rules, that will introduce a tougher regime for selling securitised products. The European Parliament is set to vote on this in committee on March 9 and chances of a joint deal in April look good so far.

CREDIT RATING AGENCIES A draft law that will make registration and direct oversight of credit rating agencies by national securities watchdogs mandatory is now being adopted by EU states and the European Parliament. Possibility of a final deal in April high.



INSURANCE The Solvency II rules are an overhaul of how insurers make sure they have enough capital to cover risks. Negotiations between parliament and EU states on a final deal proving difficult.



HEDGE FUNDS AND PRIVATE EQUITY The European Commission says closer oversight of hedge funds and private equity inevitable and it will table "appropriate legislative proposals" in April.

CREDIT DEFAULT SWAPS Continued
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLR46627320090301