European Commission Revamps Structure of Financial Supervision
On Sept. 20, the European Commission published a package of proposals to strengthen the European system of financial supervision. The proposals aim to improve the mandates, governance and funding of the three European supervisory authorities and the functioning of the European Systemic Risk Board, which should ensure stronger and more integrated financial supervision across the EU. Key features of the proposal include:
- Stronger coordination of supervision across the EU
- Extended direct supervision by ESMA over certain sectors of EU capital markets
- Improved governance and funding of the ESAs
- Promoting sustainable finance and fintech
The texts are now under review by the European Parliament and European Council, a process expected to take 12-18 months.
