15 October 2013

ECON Committee publishes ESFS motion

The ECON Committee has published a draft report on a motion for a resolution with recommendations to the Commission on reviewing the European System of Financial Supervision (ESFS).

The recommendations cover i.a.:

• ESFS' adaptation to the SSM;
• improving how it functions
• the need to consider the introduction of a comprehensive Financial Code; and
• giving the European Supervisory Authorities more supervision powers over systemically important institutions.

Rapporteur Ferber writes that before the legislative act acts are adopted, the following questions should be assessed thoroughly, considering that even during the worst times of the financial crisis Member States were not willing to confer on the ESAs substantial supervisory power:

• whether the current model of three separate supervisory authorities is the best solution for coherent supervision;
• whether the ESAs should receive more power in direct supervision over systemic institutions such as central counterparties and large cross-border insurance undertakings;
• whether the multitude and partial overlap in Union law on financial regulation creates loopholes and differing definitions and whether this could be overcome by a comprehensive European Financial Code;
• how reporting to the ESAs and national supervisors could be standardised, optimised and simplified for market participants;
• whether the emergency powers of the ESAs should be maintained.

Draft report with recommendations in annex, Rapporteur Giegold

See also:

• Review of the New European System of Financial Supervision (ESFS), Part 1: The Work of the European Supervisory Authorities (EBA, EIOPA and ESMA) – The ESFS's Micro-Prudential Pillar

• The review of the new ESFS - Part 2: The Work of the ESRB, the ESFS's Macro-Prudential Pillar

© European Parliament