The EP’s Economic and Monetary Affairs Committee (ECON) has held a hearing of the Chairpersons of the European Supervisory Authorities (ESMA, EBA and EIOPA jointly). The Chair of each of the authorities and ESMA’s Executive Director all gave statements to the hearing dedicated to the extension of their terms of office.

EBA presented its three lines of action for tackling the challenge of the Banking Union:

  • developing a meaningful agenda for convergence in supervisory and resolution practices;
  • reviewing the impact of regulatory reforms on banking markets via a strengthened analytical function; and
  • enhancing the contribution to consumer protection, especially by deepening EBA’s policy role in front of financial innovation.

ESMA reiterated its intention to move the focus of its work from legislation to implementation, as well as seeking:

  • supervisory convergence to promote consistent and effective implementation and application of rules, and the use of sufficiently similar approaches for similar risks;
  • to continue to be a source of expertise at EU level for securities markets legislation and to continue to provide advice to EU institutions; and
  • to intensify informal exchanges of views and cooperation between ECON and ESMA to ensure consistent implementation of legislation.

EIOPA outlined its main strategic priorities to:

  • enhance supervisory convergence because it is important to apply rules consistently to reduce the scope for supervisory arbitrage;
  • reinforce preventive consumer protection to gradually implement a coordinated EU level of preventive risk-based supervision, using risk-based conduct indicators and thematic reviews as a major instrument to detect early and mitigate possible situations of consumer detriment; and
  • preserve financial stability through its capacity to provide reliable risk analysis and early warning indicators, such as stress testing and pan-European personalised pension product (PEPP) development.

(Source: ECON Hearing: EBA StatementESMA Statements and EIOPA Statement)