L 331/48 Official Journal of the European Union 15.12.2010 REGULATION (EU) No 1094/2010 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO- PEAN UNION, Having regard to the Treaty on the Functioning of the European Union, and in particular Article 114 thereof, Having regard to the proposal from the European Commission, Having regard to the opinion of the European Central Bank (1), Having regard to the opinion of the European Economic and Social Committee (2), Acting in accordance with the ordinary legislative procedure (3), Whereas: The financial crisis in 2007 and 2008 exposed important shortcomings in financial supervision, both in particular cases and in relation to the financial system as a whole. Nationally based supervisory models have lagged behind financial globalisation and the integrated and intercon- nected reality of European financial markets, in which many financial institutions operate across borders. The cri- sis exposed shortcomings in the areas of cooperation, coordination, consistent application of Union law and trust between national supervisors. Before and during the financial crisis, the European Parlia- ment has called for a move towards more integrated Euro- pean supervision in order to ensure a true level playing field for all actors at the level of the Union and to reflect the increasing integration of financial markets in the Union (in its resolutions of 13 April 2000 on the Commission communication on implementing the framework for financial markets: Action Plan (), of 21 November 2002 0] C13,20.1.2010, p. 1. Opinion of 22 January 2010 (not yet published in the Official Jour- nal). Position of the European Parliament of 22 September 2010 (not yet published in the Official Journal) and decision of the Council of 17 November 2010. 0] C 40, 7.2.2001, p. 453. on prudential supervision rules in the European Union (%), of 11 July 2007 on financial services policy (2005 to 2010) — White Paper (9), of 23 September 2008 with recommen- dations to the Commission on hedge funds and private equity () and of 9 October 2008 with recommendations to the Commission on Lamfalussy follow-up: future struc- ture of supervision (%), and in its positions of 22 April 2009 on the amended proposal for a directive of the Euro- pean Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Sol- vency II) (°) and of 23 April 2009 on the proposal for a regulation of the European Parliament and of the Council on Credit Rating Agencies (19)). In November 2008, the Commission mandated a High- Level Group chaired by Jacques de Larosiére to make rec- ommendations on how to strengthen European supervisory arrangements with a view to better protecting the citizen and rebuilding trust in the financial system. In its final report presented on 25 February 2009 (the ‘de Larosiere Report), the High-Level Group recommended that the supervisory framework be strengthened to reduce the risk and severity of future financial crises. It recom- mended reforms to the structure of supervision of the financial sector in the Union. The group also concluded that a European System of Financial Supervisors should be created, comprising three European Supervisory Authori- ties, one for the banking sector, one for the securities sec- tor and one for the insurance and occupational pensions sector, and recommended the creation of a European Sys- temic Risk Council. The report represented the reforms the experts considered were needed and on which work had to begin immediately. In its Communication of 4 March 2009 entitled ‘Driving European Recovery’, the Commission proposed to put for- ward draft legislation creating a European system of finan- cial supervision and a European systemic risk board. In its Communication of 27 May 2009 entitled ‘European Finan- cial Supervision’, it provided more detail about the possible architecture of such a new supervisory framework reflect- ing the main thrust of the de Larosiére Report. 0] C 25 E, 29.1.2004, p. 394. 0J C 175 E, 10.7.2008, p. 392. 0] C 8 E, 14.1.2010, p. 26. 0J C 9 E, 15.1.2010, p. 48. 0] C 184 E, 8.7.2010, p. 214. ) O] C 184 E, 8.7.2010, p. 292.