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Brussels, |
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European system of financial supervision
The European Union (EU) introduced a supervisory architecture known as the European System of Financial Supervision (ESFS) in 2010, consisting of three European Supervisory Authorities (ESAs) and the European Systemic Risk Board (ESRB). This system became operational in January 2011, following the adoption of several legislative acts aimed at improving financial supervision across the EU.
Key Components of ESFS:
Founding Legislation:
Both the ESRB and the 3 ESAs started their operation in January 2011, following the adoption of a package of legislative acts. These comprise
Subsequent Developments:
Ongoing Consultations and Reports:
Key Components of ESFS:
- European Systemic Risk Board: Responsible for monitoring and assessing systemic risks to the financial system.
- Three European Supervisory Authorities (ESAs):
Founding Legislation:
Both the ESRB and the 3 ESAs started their operation in January 2011, following the adoption of a package of legislative acts. These comprise
- Regulation (EU) No 1092/2010 establishing the ESRB
- Regulation (EU) No 1096/2010 conferring specific tasks upon the European Central Bank concerning the functioning of the ESRBRegulation (EU) No 1093/2010 establishing the EBA
- Regulation (EU) No 1094/2010 establishing the EIOPA
- Regulation (EU) No 1095/2010 establishing the ESMA
Subsequent Developments:
- In 2014, the Directive 2014/51/EU clarified the powers of the European Supervisory Authority (European Insurance and Occupational Pensions Authority) and the European Supervisory Authority (European Securities and Markets Authority)
- On 18 April 2019, the European Parliament endorsed the legislation setting the building blocks of a capital markets union, including the review of the ESFS
- On December 2019, Regulation (EU) 2019/2175, which reviews the powers, governance and funding of the ESAs.
- On December 2019, Directive (EU) 2019/2177, which amends the Solvency II Directive, the MiFID II Directive and the 4th Anti-Money Laundering Directive. The regulation gives new powers to EIOPA, EBA and ESMA.
- Regulation (EU) 2019/2176, of 18 December 2019 amended the Regulation establishing the European Systemic Risk Board.
Ongoing Consultations and Reports:
- A targeted consultation on supervisory convergence and the single rulebook was launched by the Commission in March 2021, with the results published in May 2022.
- The Commission regularly monitors financial markets and has been publishing reviews on financial market integration in Europe.
