EU completes framework for financial supervision

19/01/2011

Commission presents proposal defining the competencies of the new financial supervisory authorities. They will develop technical standards and settle disputes between national authorities.

On 1 January, four new entities began their work supervising the EU’s banking, insurance and investment sectors.

The European Systemic Risk Board (ESRB) is responsible for establishing a common list of indicators to assess the risks posed by certain financial institutions operating in the EU.

The European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) will monitor potential threats to the EU’s financial stability in order to detect problems quickly and to allow national regulators to coordinate their responses more efficiently.

 

Timeline of events:
19/01/2011 – Commission adopts new proposal defining the authorities’ competencies
01/01/2011 – New financial supervisory authorities begin operations
17/11/2010 – Adoption by Council
22/09/2010 – Adoption by Parliament
02/09/2010 – Political consensus achieved by the Commission, representatives from the member countries and the European Parliament.
23/09/2009 – Commission makes proposals to strengthen EU financial supervision.

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