Financial supervision: Council adopts a review of the supervisory framework for financial institutions - Hoofdinhoud
The EU i will have an improved supervisory framework for European financial institutions in place by the end of the year.
The Council adopted today a first fundamental review of the functioning of the European system of financial supervision (ESFS).
The ESFS was established in 2011 and consists of:
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-three European supervisory authorities (ESAs): the European banking authority (EBA), the European insurance and occupational pensions authority (EIOPA) and the European securities and markets authority (ESMA). They supervise and provide regulatory guidance for individual sectors and institutions.
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-the European systemic risk board (ESRB) which oversees the financial system as a whole and coordinates EU policies for financial stability.
Following the financial crisis, the EU overhauled its financial system, including how it is regulated and overseen. It introduced a single rulebook, i.e. a set of regulations agreed at EU level and directly applicable in all EU member states, and created the ESAs. These authorities play a key role in ensuring that the financial markets across the EU are well regulated, strong and stable. They contribute to the development and consistent application of the single rulebook, solve cross-border problems, and thereby promote both regulatory and supervisory convergence.
The texts adopted today review tasks, powers, governance and funding of the ESAs and the ESRB, so as to adapt the authorities to the changed context in which they operate. The reform also includes provisions reinforcing the role of the EBA as regards risks posed to the financial sector by money laundering activities.
Next steps
The set of regulations will be formally signed in Strasbourg on 18 December 2019. They will then be published in official journal by the end of the year.