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EFAMA supports EC findings on ESAs operation

Capital Markets Union
31 May 2022 | Policy Position
Capital Markets Union
ESMA's LOGO in Blue on a white wall


EFAMA supports the findings of the European Commission’s report on the operation of the European Supervisory Agencies (ESAs)


EFAMA welcomes the decision of the European Commission not to propose legislative changes to the ESA Regulations and concurs that the European Supervisory Agencies have played, and will continue to have, a critical role in the strengthening of the Capital Markets Union.


Tanguy van de Werve, Director General, comments: “It has been EFAMA’s long-standing position that enhanced supervisory convergence is indispensable to the further integration of the EU’s capital markets. We share the European Commission’s view that ESMA has not always made sufficient use of its supervisory tools. Hence, ESMA should make full use of its recently enriched toolbox, instead of being granted additional direct supervisory powers”. 


Our views on the fair and balanced recommendations made by the Commission in the report are as follows:


  • ESMA should continue to follow a risk-based approach, ensuring that its supervisory priorities are based on objective considerations, including market shortcomings or failures.
  • Although ESMA is often given short, sometimes unrealistic, deadlines by the EU co-legislators, ESMA should nonetheless improve its engagement with stakeholders by offering them sufficient time to comment and by taking their feedback into greater account.
  • ESMA should pursue more frequent and constructive supervisory discussions between National Competent Authorities. The Commission has already proposed in the AIFMD/UCITS review that NCAs should share, when requested, relevant supervisory cases with ESMA. Drawing up criteria on how NCAs should select these supervisory cases would be the next logical step for ESMA.
  • Additional supervisory activities on national enforcement would be welcome, given the important discrepancies in the use of enforcement measures and sanctions across the European Union.

We regret, however, that the report does not sufficiently take into consideration other concerns expressed by the industry during the public consultation on supervisory convergence and the single rulebook. These are, for instance, the need for a better sequencing between Level 1 and Level 2 acts and the need for greater clarity and predictability in the Q&A process.


EFAMA will continue to engage with the European Commission and others to ensure that the European System of Financial Supervision remains fit for purpose.


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Download the EFAMA Reply to the European Commission’s targeted consultation on the supervisory convergence and the single rule book


Download the Commission’s report on the operation of the European Supervisory Agencies (ESAs)

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