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18/01/2018

Proposed reform of the organisational structure and powers of ESAs

On 20 September 2017, the European Commission published a set of proposals aimed at strengthening the European system of financial supervision performed by the three ESAs (ESMA, EBA, and EIOPA), in order to ensure stronger and more integrated financial supervision in the EU.

On 20 September 2017, the European Commission published a set of proposals aimed at strengthening the European system of financial supervision performed by the three ESAs (ESMA, EBA, and EIOPA), in order to ensure stronger and more integrated financial supervision in the EU. The main features of the proposal are the following:

  • The strengthening of supervision coordination across the EU by asking national authorities to notify ESMA of their intention to approve a market player which outsources a substantial part of its activities outside the EU.
  • Increased supervision of capital markets by ESMA in certain sectors of EU capital markets such as funds with a European label or critical EU reference indices.
  • New ESA governance based on an executive board whose members are independent from national authorities
  • A new mode of funding for ESAs:   40% of expenses would still be funded by the European Commission while the remaining 60% would no longer be funded by national authorities, but by the private sector placed under the authority of these ESAs.
  • Integration of technological innovation and sustainable finance in financial supervision.