Based on the CAs’ self-assessment, the three reports highlight that the independence of CAs is multi-faceted and dependent on a number of legal, institutional, operational and cultural factors.
The
three European Supervisory Authorities (ESAs) – the EBA, EIOPA and ESMA
– published today their individual reports on the supervisory
independence of competent authorities (CAs) in their sectors.
ESMA report
EBA report
EIOPA report
The three reports take stock of the factual situation
on CAs’ independence along key angles, namely, operational, financial
and personal independence as well as accountability and transparency.
The reports seek to factually represent the arrangements and practices
reported by CAs without assessing the independence of individual CAs.
Key trends
CAs state that they are independent authorities, operating
independently on a day-to-day basis, with sufficient financial and
personal independence, and an adequate framework for ensuring
accountability and transparency. However, the precise approach and
framework reported by CAs frequently varies. For instance:
- On operational independence, while the vast
majority of CAs are established as independent bodies, a few are
established under the aegis of a ministry and a limited number are
required to reply to requests made by certain public bodies, such as
Ministers. Not all CAs report being in a position to hire staff at the
level needed for the fulfilment of their supervisory tasks.
- On financial independence: while almost all CAs
reported adequate funding, a variety of funding models are in operation
with some being subject to centralised government budget rules and a few
allowing for the creation of reserves.
- On personal independence: while a framework is in
place in most CAs, there are differences on aspects such as terms of
office and removal conditions for CAs’ senior management and board
members, management of conflicts of interest, cooling-off periods and
legal protection for staff.
- On transparency and accountability: CAs typically
ensure public transparency through the publication of documents such as
annual reports or financial statements, disclosing supervisory measures
taken, and through duties to report periodically on their activities to a
government entity or democratic assembly. Some publish documents in
English as a way to enhance transparency.
Since January 2020, the ESAs have the clear task of fostering and
monitoring supervisory independence. The three ESAs have, therefore,
closely coordinated their work to examine how key aspects of supervisory
independence have been incorporated into the governance and activities
of CAs.
Next steps
The reports can support CAs in assessing whether it might be
desirable to seek any legislative or regulatory amendment to further
improve the framework underpinning their independence.
They provide ESAs with valuable information that may be considered for any future work in the field of supervisory independence.
In addition, the reports may be used by the European Commission as
input for its own report on the independence of CAs that it is preparing
under the review clauses of the ESAs founding regulations.
ESMA
© ESMA
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