On 9 July 2019, the Joint Committee of the European Supervisory Authorities (ESAs) published a report on the cross-border supervision of retail financial services.
The report provides an overview of the main rules that apply in the EU in respect of consumer protection, conduct of business, and the cooperation between Member State national competent authorities (NCAs) and assesses the extent to which these rules address the supervisory issues faced by NCAs. The report does not expand on the wider work of the ESAs on supervisory convergence, and does not address wider supervisory issues that NCAs face.
The report also describes the main Directives and Regulations that the ESAs have reviewed and for which they have identified those provisions related to:
- the definition of cross-border provision of services;
- passporting (services and products);
- notifications and exchange of information;
- home and host responsibilities;
- information reporting requirements for statistical / supervisory purposes for host NCAs;
- simultaneous exercise of the freedom to provide services and the right of establishment;
- exercise of the freedom to provide services by a branch or another establishment in a host Member State for providing services in a third Member State; and
- jurisdiction shopping.
The report also sets out recommendations to the European Commission, Council and European Parliament, proposing to amend existing, or develop new, legislation to facilitate the deepening of the Single Market. The report also sets out recommendations to NCAs including high level principles of cooperation.