The ESAs recommend actions to ensure the EU’s regulatory and supervisory framework remains fit-for-purpose in the digital age
07 February 2022
The three European Supervisory Authorities (EBA, EIOPA and ESMA)
published today a joint report in response to the European Commission’s
February 2021 Call for Advice on Digital Finance. The proposals put
forward aim at maintaining a high level of consumer protection and
addressing risks arising from the transformation of value chains,
platformisation and the emergence of new ‘mixed-activity groups’ i.e.
groups combining financial and non-financial activities.
The ESAs note that the use of innovative technologies in the EU
financial sector is facilitating changes to value chains, that
dependencies on digital platforms are increasing rapidly, and that new
mixed-activity groups are emerging. These trends open up a range of
opportunities for both EU consumers and financial institutions, but also
pose new risks.
Therefore, the ESAs recommend rapid action to ensure that the EU’s
financial services regulatory and supervisory framework remains
fit-for-purpose in the digital age.
The proposals include:
- a holistic approach to the regulation and supervision of the financial services value chain;
- strengthened consumer protection in a digital context, including
through enhanced disclosures, complaints handling mechanisms, measures
aimed at preventing the mis-selling of tied/bundled products, and
improved digital and financial literacy;
- further convergence in the classification of cross-border services;
- further convergence in addressing money laundering/financing of terrorism risks in a digital context;
- effective regulation and supervision of ‘mixed-activity groups’, including a review of prudential consolidation requirements;
- strengthened supervisory resources and cooperation between financial
and other relevant authorities, including on a cross-border and
multi-disciplinary basis; and
- active monitoring of the use of social media in financial services.
Report
EIOPA
© EIOPA
