Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

12 December 2011

FN: European Supervisory Authorities call for funding shake-up


Default: Change to:


Europe's new financial watchdogs are demanding a change to their funding structure in order to remove an “awkward” reliance on national regulators, as they prepare to use the full scope of their powers. The ESAs have called to be wholly funded by the European Union.


A spokesman for the European Securities and Markets Authority said: “Along with the other supervisory agencies, we would ideally like to be fully funded by the EU and have already voiced this to the European Parliament. We do not know yet when, or whether, this might happen, but it appears awkward for national regulators to be taking policy decisions that may have an impact on their own budgets.”

ESMA, along with the European Banking Authority and the European Insurance and Occupational Pensions Authority, was set up by the European Commission at the start of this year as part of a new regulatory framework.

The bodies are currently 60 per cent funded by regulators of Member States, including the UK’s Financial Services Authority, with the remainder made up by the EU.

The call to be fully financed from Brussels reflects the agencies’ desire to free themselves from the political wrangling that has dogged regulatory procedures so far this year, particularly around the European Market Infrastructure Regulation and new short-selling rules.

Full article (FN subscription required)



© Financial News


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment