On Tuesday 10th of July, the European Parliament co-rapporteurs published a disappointing draft report on the review of the European System of Financial Supervision: not only lacking any ambitious changes on the much needed reform of the governance model and funding of the European Supervisory Authorities (ESAs – EBA, ESMA and EIOPA), but even weakening some direct supervisory powers for ESMA proposed by the European Commission.
Since 2008, the ESAs have prioritized the prudential supervision, while consumer protection and conduct of business have remained on the sidelines. In 2017, when the European Commission published its proposal for the review of the ESAs, the major EU public interest organisations working on financial services stressed their disappointment with this proposal and formed an alliance to propose amendments aiming to reform the ESAs’ mandate, governance and funding that – if taken on board - would truly deliver for the EU citizens