Lord Turner, chariman of the Financial Services Authority (FSA), said it was "vitally important" that European financial supervisors did not intervene directly in the running of individual countries' markets. "We are clear the fundamental process of supervision has to occur where expertise is, with the national authorities," said Lord Turner. His comments at the FSA's asset management conference follow an agreement earlier this month on the creation by the European Union of a set of regulators to oversee the region's banks, insurers, pension funds and broader financial markets. The three European Supervision Authorities (ESA), which will come into being at the start of next year, will oversee the implementation of EU financial rules by regulators in individual member states and will have sweeping powers to intervene in the financial markets. Fears have been raised of potential "mission creep", as the ESAs wield their powers and Lord Turner's comments are the first hint of tensions between the new regulators and existing domestic bodies. His comments came as the EU looked to have reached a breakthrough on new regulation for the private equity and hedge fund industry. http://www.telegraph.co.uk/finance/...terfere-FSA-warns-new-European-regulator.html We are supervising the supervisor who is supervising institutions to be supervised. Hum....I smell big trouble between UK and Europe