Council adopted legal texts establishing the European Systemic Risk Board and three new supervisory authorities
17 November 2010
The Council adopted legal texts underpinning a reform of the EU framework for supervision of the financial system, aimed at eliminating deficiencies that were exposed during the financial crisis.
It adopted regulations establishing a European Systemic Risk Board (ESRB), which will provide macro-prudential oversight of the financial system, and three new supervisory authorities at the micro-financial level, namely:
· a European Banking Authority (EBA);
· a European Insurance and Occupational Pensions Authority (EIOPA); and
· a European Securities and Markets Authority (ESMA).
The four new bodies will be part of a European system of financial supervisors, which will include the supervisory authorities of the member states. The ESRB and the EIOPA will be sited in Frankfurt, the EBA in London and the ESMA in Paris.
The new system will be operational as from 1 January 2011.
Adoption by the Council follows an agreement reached with the European Parliament on the key elements of the reform, as endorsed by the Council at its meeting on 7 September.
© Council of the European Union
