Featured Product

    EC Proposal on Financial Supervision for the Capital Markets Union

    September 20, 2017

    EC proposed reforms to pave the way for further financial integration and a full Capital Markets Union, to promote jobs, growth, and investments in Europe and to strengthen the Economic and Monetary Union. The proposals also include steps to foster the development of financial technologies (fintech) and ensure that sustainability considerations are systematically taken into account in supervisory practices at the European level. To ensure a uniform application of EU rules and promote a true Capital Markets Union, the proposals also entrust ESMA with direct supervisory power in specific financial sectors. In addition, EC is proposing targeted changes to the composition and organization of ESRB, which monitors stability risks for the financial system as a whole.

    The reforms will promote further capital market integration following the UK's departure from the EU. They will also introduce changes to the supervisory relations with non-EU countries to ensure proper management of all financial-sector risks. Valdis Dombrovskis, Vice-President for Financial Stability, Financial Services, and Capital Markets Union said: "Financial markets are changing fast. We are seeing renewed cross-border integration, new opportunities in fintech and a boom in sustainable and green finance. The EU needs to act as one player so that we can stay ahead of the curve. More integrated financial supervision will make the Economic and Monetary Union more resilient. These pragmatic proposals will also make it easier for our companies to operate cross-border and build consumer trust." The key features of the proposal include the following:

    Stronger coordination of supervision across the EU: ESAs will set EU-wide supervisory priorities, check the consistency of the work programs of individual supervisory authorities with EU priorities, and review their implementation.

    Extended direct capital markets supervision by ESMA: EC has proposed to make ESMA the direct supervisor over certain sectors of capital markets across the EU

    Improved governance and funding of ESAs: ESAs will take decisions more independently from national interests. Under the new governance system, newly created Executive Boards with permanent members will lead to quicker, more streamlined, and EU-oriented decisions.

    Promoting sustainable finance and fintech: ESAs will promote sustainable finance, prioritize fintech, and coordinate national initiatives to promote innovation and strengthen cybersecurity.


    Related Links

    European System of Financial Supervision 

    EC Proposal (PDF) 

    Press Release

    Speech of Vice President Dombrovskis

    Keywords: Europe, EU, Banking, Securities, Insurance, Financial Supervision, Capital Markets Union, Fintech, ESAs, Financial Integration, Sustainable Finance, EC

    Related Articles
    News

    MAS Amends Notice 610 on Reporting Templates for Banks in Singapore

    MAS published amendments to Notices 610 and 1003 related to submission of statistics and returns, along with the reporting templates and frequently asked questions (FAQs) associated with these Notices.

    January 24, 2020 WebPage Regulatory News
    News

    HKMA Updates Policy Module on Supervisory Review Process

    HKMA is issuing, by notice in the Gazette, revised versions of two Supervisory Policy Manual modules as statutory guidelines under section 7(3) of the Banking Ordinance. The Supervisory Policy Manual modules are CA-G-5 on “Supervisory Review Process” and SB-2 on “Leveraged Foreign Exchange Trading.”

    January 24, 2020 WebPage Regulatory News
    News

    PRA Amends Pillar 2 Capital Framework for Banks

    PRA published the policy statement PS2/20 that contains the final amendments to the Pillar 2 framework and provides feedback to responses to the consultation paper CP5/19 on updates related to Pillar 2 capital framework.

    January 23, 2020 WebPage Regulatory News
    News

    FED Proposes to Revise Information Collection Under Market Risk Rule

    FED proposed to revise and extend, for three years, FR 4201, which is the information collection under the market risk capital rule.

    January 22, 2020 WebPage Regulatory News
    News

    HKMA Consults on Stay Rules on Financial Contracts Under FIRO

    HKMA published proposals for making rules related to contractual stays on termination rights in financial contracts for authorized institutions under FIRO or the Financial Institutions (Resolution) Ordinance (Cap. 628).

    January 22, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on Minimum Liquid Asset Requirements for Banks

    MAS published amendments to Notices 1015, 613, and 649 related to the minimum liquid assets (MLA) requirements.

    January 21, 2020 WebPage Regulatory News
    News

    APRA Publishes Submission on Fintech and Regtech

    APRA published its submission, to the Senate Select Committee, on financial technology and regulatory technology.

    January 21, 2020 WebPage Regulatory News
    News

    OSFI to Implement Operational Risk Capital Rules for Banks in Q1 2022

    OSFI decided to move domestic implementation of the revised Basel III operational risk capital requirements from the first quarter of 2021 to the first quarter of 2022.

    January 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guideline on Threshold for Credit Obligations Past Due

    ECB published a draft guideline, along with the frequently asked questions (FAQs), on the definition of the materiality threshold for credit obligations past due for less significant institutions.

    January 20, 2020 WebPage Regulatory News
    News

    OSFI Consults on Instruction Guide for Termination of Pension Plan

    OSFI is consulting on draft revisions to the instruction guide for termination of a defined benefit pension plan.

    January 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4530