Supervisory Convergence Tools
ESMA has a diversified supervisory convergence toolkit to build a strong common supervisory culture across the EU and promote effective, sound and consistent supervision of the EU financial markets.
ESMA selects its tools based on the risks identified, in order to achieve the most effective supervisory convergence outcomes.
ESMA divides its tools to promote supervisory convergence into three broad categories:
Preparatory tools
Preparatory tools are designed to help support the effective application of new or amended rules or a response to new market developments, and to support the application of common high-level standards of supervision.
▸ Examples: guidelines, Q&As, opinions, statements, supervisory briefings.
Implementation tools
Implementation tools are designed to understand how rules or market developments are being supervised in practice (this includes where relevant authorisation/licencing and enforcement action), to enable NCAs to improve the efficiency, effectiveness and consistency of current or future work, and/or to take action to address a live issue.
▸ Examples: Common Supervisory Actions, Union Strategic Supervisory Priorities, supervisory case discussions, Common Enforcement Priorities, delegation agreements, thematic studies, Voluntary Supervisory Colleges.
Assessment / remediation tools
Assessment / remediation tools are designed to test whether supervision of rules or market developments is being carried out in line with expectations and/or to take action to address a situation where this appears not to be the case. In this category are included the tools used to formally assess whether supervision of national competent authorities is effective.
▸ Examples: peer reviews, warnings, mediation, breach of Union Law investigations, product intervention measures.
