ECB contribution to the European Commission’s consultation on the operations of the European Supervisory Authorities
End of March 2017, Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) of the European Commission launched a public consultation on the operations of the European Supervisory Authorities (ESAs).
The consultation was designed to gather evidence from all interested parties on the operations of the ESAs, focusing on a number of issues in the following areas:
- Tasks and powers;
- Supervisory architecture;
The ECB responded to this consultation and made some general remarks:
- The review of the mandate, governance and operations of the ESAs must take into account developments which have taken place over the past six years (Banking union, CMU, Brexit, etc).
- The ECB supports the objective of fostering effective and consistent prudential supervision and regulation across Europe.
- It supports further integration of the supervisory framework at the EU level, both for banking and for the capital markets. In this context, the aim of the review should be to strengthen the EU dimension of supervision.
- The ECB reiterates that a strong CMU will, in the long run, require the creation of a single capital markets supervisor.
- The ECB supports the Commission’s move forward more integrated supervision for certain segments of the capital markets.
- The ECB also reiterates its call for strengthened macroprudential supervision for capital markets and extending the macroprudential toolkit for non-banking activities.
- The ECB supports a review of the governance structure of the ESAs, including a review of the voting rights and membership structure of the Boards, to ensure that the European dimension is fully reflected in their decision-making.
- Based on ESMA’s current competencies and tasks within the existing institutional framework, the ECB also supports a review of the composition of the ESMA Board of Supervisors, granting the ECB observer status.