On 17 January 2022, the European Commission issued a summary report ‘Targeted consultation on taking stock of the framework for supervising European capital markets, banks, insurers and pension funds: supervisory convergence and the single rulebook’. The targeted consultation was issued last year and feeds into the preparation of a report required by the Capital Markets Union Action Plan which will cover a review required under the European Supervisory Authorities (ESAs) founding Regulations as well. The consultation also sought targeted views on certain aspects related to the 2019 ESAs review and contributes to a wider debate on supervisory convergence and the single rulebook.

Key points from the summary report include:

  • Regarding the 2019 ESAs review changes, the most recurrent comment from the majority of stakeholders is that it is too early to evaluate the recent amendments and to consider further changes, given the short period of time and the extraordinary events caused by COVID-19.
  • The vast majority of respondents rated very positively the extent to which the ESAs contribute to promoting a common supervisory culture and consistent supervisory practices.
  • As regards the European Securities and Markets Authority’s existing direct supervisory powers for credit rating agencies and trade repositories, the majority of respondents assess these rather positively. Respondents nevertheless pointed out that there is some room for improvement mainly related to communication and transparency aspects.
  • A majority of stakeholders considered that the ESAs responded appropriately in the COVID-19 crisis and that the current ESAs powers are largely adequate.