The European Commission has issued a consultation on the European Supervisory Authorities – the European Banking Authority, the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (the ESAs).
The consultation is designed to gather evidence on the operations of the ESAs focusing on a number of issues in the following areas: (i) tasks and powers; (2) governance; (3) supervisory architecture; and (iv) funding.
In relation to tasks and powers, there is a brief discussion regarding the possible extension of the ESAs’ powers. For example the consultation paper states that:
- consideration should be given to whether ESMA should be granted the powers to directly supervise Data Reporting Services;
- consideration should also be given as to whether “ESMA could be directly entrusted with responsibility for constitution and supervision of a single consolidated tape for financial instruments transactions in all markets, on or off exchange, whether they are traded in the EU”;
- several EU laws provide for standardised fund rules whose success across the EU depends on their consistent use. In order to reap the full benefits of the Single Market, the role of ESMA could be further strengthened in the area of these funds. The cross-border functioning of the passport could also be streamlined; and
- given the cross-border nature of the activities of central counterparties (CCPs) and their systemic importance, consideration could be given on how to strengthen their collective supervision “through a transfer of appropriate powers to the pan-European level.” The consultation paper adds that in this respect “it should also be taken into account that currently CCPs established in the United Kingdom have a large share of the EU clearing market and therefore an important part of the supervisory capacity of that market is in the United Kingdom”.
The deadline for comments on the consultation is 16 May 2017.
View Public consultation on the operations of the ESAs, 21 March 2017