Brussels. 23 May 2022
The European Commission has today published a report on the activities of the three European Supervisory Authorities (ESAs) that make up the European System of Financial Supervision: the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA). These three authorities play an important role in supervising European financial markets, and ultimately protecting financial stability.
Today’s report – which relies on findings from broad stakeholder outreach – concludes that the ESAs have continued to perform their tasks efficiently and effectively since the last review in 2019, including during the recent challenging circumstances caused by the COVID-19 pandemic. The report also suggests a targeted way forward towards an enhanced single rule book. Commissioner for Financial services, financial stability and Capital Markets Union Mairead McGuinness said:
“The European Supervisory Authorities play a crucial role in supporting the Commission and ensuring supervisory convergence among national competent authorities. Our findings confirm that overall the European System of Financial Supervision is rbust, in particular maintaining financial stability and ensuring that the financial system operates in the best interest of citizens and the wider economy. There is always room for improvement and we work together on those areas so that the system functions even better. Overall, this report makes a significant contribution to our financial framework, not least to the Capital Markets Union.”
The Commission takes this as a clear indication that the overall architecture of the European System of Financial Supervision is largely adequate. The report identifies some areas where improvements could be implemented with no need for legislative changes. The Commission will work together with the ESAs to assess whether and in which areas non-legislative measures are warranted.
The report is available here.