Date: 29th May 2021
Author: BETTER FINANCE

There has been considerable progress on both supervisory convergence and the single rulebook since the three European Supervisory Authorities (ESAs) were created in 2011. Nevertheless, both require continued and appropriately targeted efforts to make further progress. To this end, the Commission’s capital markets union (CMU) action plan published on 24 September 2020, requires the European "Commission to work towards an enhanced single rulebook for capital markets by assessing the need for further harmonisation of EU rules and monitoring progress towards supervisory convergence [...], take stock of what has been achieved in Q4 2021 and consider proposing measures for stronger supervisory coordination or direct supervision by the European Supervisory Authorities [and] assess the implications of the Wirecard case for the regulation and supervision of EU capital markets".

To take stock of what has been achieved so far, the Commission launched a consultation that will inform its report on the review of the ESAs required by the CMU action plan with view on reducing differences between national laws and providing more detailed rules where it is important for stability and fairness in the Single Market.

In its response to the consultation, BETTER FINANCE stresses the considerable efforts and impact the ESAs brought to bear increasing the level of consumer protection and bringing about much-needed clarity and consistency in European financial legislation and regulation, despite their scare and mostly non-binging powers and an important lack of "tools" and means at their disposal.