Twelve recommendations for the ESA review

Abstract

In January 2011, the European Union established three European Supervisory Authorities (ESAs) for the financial sector: the European Banking Authority (EBA, in London), the European Insurance and Occupational Pensions Authority (EIOPA, in Frankfurt) and the European Securities and Markets Authority (ESMA, in Paris). So far, the ESAs have played less a supervisory role than a regulatory role. They have focused on technical measures specifying in more detail the often abstract legislation adopted by the European Parliament and the Council. These measures may be binding technical standards or non-binding guidelines or recommendations. They are of great importance, to both financial and non-financial industry. Currently, the European Commission is reviewing the regulations governing the three ESAs and will bring forward its proposals for amendments in early 2015. This paper entails 12 recommendations to policymakers for improving the ESAs’ work.