Finance Watch welcomes the opportunity to review the European System of Financial Supervision (ESFS). We consider the system of supervision to be a key driver in ensuring the financial stability and good functioning of the EU markets. In order to ensure that the European financial system operates in a way that protects consumers, investors and taxpayers we need strong European supervisory authorities that are appropriate staffed, financed and given strong mandates.
However, we are disappointed that there is a lack of ambition in the Commission proposal. Following the public consultation on the review, Finance Watch believed that the Commission was planning a significant change to the operation of the European Supervisory Authorities (ESAs). Instead, the proposal leaves the fundamental structures of the ESAs unchanged. The lack of ambition in the current proposal means that there is a need to consider a deeper review in the future.
Any such review should also be based on the input of experts who have deeply considered the structure of the ESFS. The current proposal is largely based on responses to a series of public consultations. The lack of expert input leaves the proposal open to undue influence of stakeholders who may have vested interests shaping how the system is constructed. Finance Watch is concerned that this allows the industry to write its own rules. Therefore, we would like to see a revival of the High-Level Expert Group on financial supervision to inform a future review.
This blueprint sets out the features that Finance Watch would like to see from a ESFS that serves the needs of European society.