EU lets financial watchdogs off the leash

From January 2011, the regulation of financial services across Europe will be overseen by three European Supervisory Authorities (ESAs).

The ESAs will work with the newly established European Systemic Risk Board (ESRB) to ensure financial stability and to strengthen and enhance the EU supervisory framework. They will improve coordination between national supervisory authorities, such as the FSA, and raise standards of national supervision across the EU.

The ESAs will be: the European Securities and Markets Agency (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA). They will replace the current level 3 (otherwise known as Lamfalussy) committees: Committee of European Banking Supervisors (CEBS), Committee of European Securities Regulators (CESR) and Committee of European Insurance and Occupational Pensions (CEIOPS).

• Primary Source

ESO: Background information: The EU's new supervisory architecture - evolution or revolution? http://www.europeansources.info/record/the-eus-new-supervisory-architecture-evolution-or-revolution/

European Commission: MEMO/11/1: A turning point for the European financial sector http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/1&format=PDF&aged=0&language=EN&guiLanguage=en

UK: Financial Services Authority: European Supervisory Authorities (ESAs) http://www.fsa.gov.uk/about/what/international/european/esas

European Commission: DG Internal Market and Services: General policy: Financial Services Committee Architecture http://ec.europa.eu/internal_market/finances/committees/index_en.htm

Website: European Banking Authority (EBA) http://www.eba.europa.eu/

Website: European Securities and Markets Authority (ESMA) http://www.esma.europa.eu/

Website: European Insurance and Occupational Pensions Authority (EIOPA) https://eiopa.europa.eu/

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