No fewer than thirteen expert meetings have been held at the EU Council since the European Commission presented its wide-ranging ‘MISP’ legislative package on 4 December, aimed at reforming the infrastructure and supervision of EU financial markets (see EUROPE 13766/17). Five months later, the Cyprus Presidency of the Council is seeking political direction on two key institutional elements of the package where divisions persist: the scope of direct supervision by ESMA and the arrangements for its governance (see EUROPE 13825/24).
Perimeter. In a working document addressed to the EU Member States, Nicosia invites the European finance ministers, who will be meeting in Brussels on Tuesday 5 May, to take a more precise position on the scope – broad or targeted – of a reformed European supervision.
In particular, the Presidency draws attention to the definition of the concept of ‘significance’, which makes it possible to identify the players likely to be considered among the most important and, as such, to come under the ESMA umbrella. “Should it be based primarily on quantitative criteria, such as cross-border activity? If so, what criteria would the ministers consider essential for identifying the most significant entities?”, asks Nicosia.
Governance. Ministers are also invited to explain what reforms to ESMA’s governance they believe are necessary and to give their views on the appropriateness of creating an independent executive board, assessing whether this would make it possible to reconcile effective decision-making with sufficient involvement of the national authorities within the Board of Supervisors.
They are also called upon to specify what adjustments would be necessary to ensure a better institutional balance, and to define the arrangements for cooperation between ESMA and the competent national authorities in the day-to-day exercise of supervision, taking care to limit costs and avoid duplication.
See the working document: https://aeur.eu/f/lps (Original version in French by Bernard Denuit)