ESMA publishes response to consultation on the operation of the ESAs
The European Securities and Markets Authority (ESMA) has published its response to the European Commission’s consultation on the operation of the European Supervisory Authorities (ESAs). The response includes recommendations that ESMA’s Board of Supervisors believe will improve the Authority’s functioning and better allow it to achieve its objectives of investor protection, and stable and orderly EU financial markets.
The response reflects ESMA’s experience over the past six years including its role in supporting the objectives of the Capital Markets Union (CMU), and the progress made on promoting and facilitating supervisory convergence across Member States, and the challenges posed by the UK’s decision to leave the EU.
In view of the challenges EU financial markets are facing, ESMA believes that successful European capital markets require a strengthened EU framework. In support of this, ESMA has made a number of recommendations related to its functioning and powers. The main areas covered by the proposals are:
- International aspects of EU financial markets: equivalence assessments of third countries and the supervision and enforcement of certain third country entities;
- Direct supervision;
- Supervisory convergence; and
- Access to data and reporting.