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21 June 2007

CESR assesses equivalence of supervisory powers under MAD and Prospectus Directive





In mid 2006, CESR launched a mapping exercise which assessed the supervisory powers to assess whether the competent authorities benefit from equivalent supervisory powers following the entry into force of the Market Abuse and the Prospectus Directives. Among others, CESR examined how these powers are exercised in their day-to-day application.

The exercise reveals that Member States have granted their competent authorities the powers set out in the Directives. The general degree of equivalence is high, although significant differences still remain in important areas.

Other findings include that several supervisors lack the possibility to issue practical rules to properly apply the Directives.

The remaining weak points under the Prospectus Directive relate to the capacity to disclose supervisory information to the public.
Under the MAD, authorities are generally well equipped with supervisory, investigative and sanctioning powers, except in some cases.

The cross-border supervisory cooperation powers have been significantly harmonised. Nevertheless, some areas of improvement remain; in particular, regarding the capacity to open an investigation solely on a request by a foreign authority.

The documents released for the assessment include a report submitted to the FSC, two correspondence tables on the MAD and the Prospectus Directive, and two reports including executive summaries describing its members’ supervisory powers under the MAD and the Prospectus Directive and relevant implementing measures.

Similar exercises will be conducted on the Transparency and the MiFID Directive.

Press release
Report to the FSC
Report on CESR Members powers under the Market Abuse Directive and its implementing measures
Report on CESR Members powers under the Prospectus Directive and its implementing measures
Market Abuse Directive - summary table of answers
Prospectus Directive - summary table of answers


© CESR - Committee of European Securities Regulators


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