EFAMA welcomes the trilogue agreement on the ESFS review under the Romanian EU Presidency
Brussels, 2 April 2019 - EFAMA commends the determined efforts deployed by the Romanian Presidency, the European Parliament negotiating team and the European Commission to reach a trilogue agreement on the ESFS review under this mandate.
Two positive points worth highlighting in the ESFS agreement:
The final text includes a provision on “no-action letters” as part of the ESAs toolbox, and this is good news. We have argued that forbearance mechanisms are needed in instances where financial institutions would be found in breach of other EU provisions, or where compliance with Level 2 provisions is recognised as difficult, where not impossible. The agreed text however establishes a process that is far from swift or pragmatic, and ultimately it remains unclear whether the ESAs can effectively suspend application of unworkable L2 acts. Another missed opportunity is not having greater representation of financial market supervisors at the level of the ESRB General Board.
Finally, we welcome the fact that ESMA and EIOPA will be given the possibility to provide their expert judgement prior to EBA reaching decisions related to AML- policies targeting financial institutions covered in their mandate. It is also important that such decisions are to be taken in agreement with ESMA/EIOPA. This ensures that the right expertise is in place and the decisions reflect the specific features of each business model and industry sector.
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