The EEA member firms of Deloitte Touche Tohmatsu Limited have responded to the European Commission’s consultation on “The Operations of the European Supervisory Authorities”.
Based on Deloitte´s knowledge and experience, there are a few core principles for standard-setting and enforcement activities that Deloitte believes are particularly relevant for the EU environment. In particular, Deloitte believes that:
(a) a separation of powers between the activities of standard-setting, enforcement and final decisions on sanctions favours independent decision-making and mitigates the risks of conflicts of interests;
(b) at this stage, there is still a role to be played by NCAs as the market participants’ enforcers. Deloitte would support a reinforcement of the ESAs’ powers towards supervisory convergence and NCA supervision, where needed. As the EU further implements harmonised capital markets frameworks across jurisdictions the balance of powers between NCAs/ESAs would need to be revisited;
(c) it is important that the ESAs both seek and ensure adequate stakeholder involvement in their thought processes and have a regular dialogue with them. This is particularly true for members of the accounting and auditing profession as Deloitte has shared objectives. ESAs will benefit from an increased dialogue in terms of competence, resources, legitimacy and ultimate buy-in for the projects and activities conducted.
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