The three European authorities (ESAs) that make up the European financial supervisory system - the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA) - have continued to perform their tasks effectively and efficiently since the last review in 2019, including at the height of the Covid-19 pandemic, the European Commission concluded in its activity report published on Monday 23 May.
The European Commission sees this as a clear indication that the overall architecture of the European financial supervisory system is largely adequate. However, the report identifies some areas where improvements could be made without the need for legislative change. Based on the findings of a broad stakeholder consultation, it proposes, inter alia, a targeted way forward towards an improved single regulation.
The EU institution recommends, for example, the creation of an online tool that would allow all stakeholders to report cases of inconsistency in supervision. It also raises the possibility of ad hoc peer reviews between competent authorities in the case of events with major supervisory implications. The European Commission will work with the European authorities to determine whether, and in which areas, non-legislative measures are justified.
“Our findings confirm that overall the European system of financial supervision is robust, particularly in terms of maintaining financial stability and ensuring that the financial system operates in the best interests of citizens and the wider economy”, said Mairead McGuinness, European Commissioner for Financial Services, in a statement. According to her, “there is always room for improvement”.
To consult the report: https://aeur.eu/f/1s4 (Original version in French by Anne Damiani)