EU Day-to-Day Supervision or Intervention-based Supervision: Which Way Forward for the European System of Financial Supervision?

Abstract

The European System of Financial Supervision (ESFS) was established by the EU at the beginning of 2011. Participating in its operation are national authorities and EU bodies (or agencies), which are known as European Supervisory Authorities (ESAs). Under the ESFS, day-to-day supervision remains overwhelmingly a matter for national authorities, but the ESAs are vested with certain intervention powers over national authorities and, exceptionally, over market actors. The aim of this article is to ask questions about the division of labour between the ESAs and the national authorities. Thereby, it seeks to participate in the debate on what ought to be the future direction of the ESFS. Specifically, it seeks to open the debate on whether intervention-based supervision or EU day-to-day supervision should be preferred. Focusing mainly on the European Securities and Markets Authority (as one of the ESAs), the article concludes that intervention-based supervision has prima facie more to offer.