2017年-EBA欧洲银行管理局_BSG_response_to_EC_on_EC_Public_Consultation_on_review_of_ESAs_31页_376kb

Summary of the EBA Banking Stakeholder Group Consultation on ESA Operations

Core Content

The EBA Banking Stakeholder Group (BSG) provided detailed comments on the Public Consultation regarding the operations of the European Supervisory Authorities (ESAs), including EBA, EIOPA, and ESMA. The consultation aims to improve the effectiveness of the ESAs in promoting supervisory convergence, enhancing transparency, and ensuring consistent application of EU financial regulations. The BSG's feedback is based on their collective input and outlines both general observations and specific recommendations.

Main Views and Key Points

1. Role and Effectiveness of the ESAs

• The ESAs have played a crucial role in promoting a common supervisory culture and clarifying EU legislation through level 2 and 3 texts.
• They have contributed to harmonizing definitions and supervisory practices across Member States.
• However, there are perceived weaknesses, such as the lack of EU interest orientation in the decision-making of the supervisory boards and limited use of enforcement powers.

2. Need for Reform and Additional Powers

• The ESAs should be granted more powers, including:
  • Observer status in level 1 legislative negotiations to leverage their expertise.
  • No-action powers to temporarily exempt enforcement in cases of financial stability risk.
  • Expanded supervisory powers for ESMA to include Central Counterparties (CCPs), especially systemic ones.
  • Power to ban harmful practices that threaten financial stability or consumer protection.
• The BSG emphasizes the need for a clear separation between the definition of regulation and its implementation (supervision).

3. Governance and Autonomy

• Some members advocate for greater autonomy of the ESAs from National Competent Authorities (NCAs), suggesting:
  • Voting rights for Chairs of the ESAs.
  • Independent and permanent Board Members, similar to the ECB.
  • Diversity in board composition, including representatives from finance ministries.
• Others believe that the current structure, with members from national authorities, is sufficient to incorporate diverse market insights.

4. Stakeholder Groups and Resources

• Stakeholder groups need more resources and support to effectively engage with the ESAs.
• The BSG recommends:
  • Earlier involvement of stakeholders in the drafting of technical standards.
  • Research budget and the power to commission independent evaluations.
  • Greater coordination between stakeholder groups of the different ESAs.

5. Funding Mechanisms

• There is a call for more diverse funding sources, including both industry and public sector contributions.
• Some members suggest that public funding via taxation could be an alternative to industry fees.
• The consensus is that public funding should be appropriate and sufficient to ensure effective regulation.

6. Relocation of EBA Due to Brexit

• The relocation of EBA is a pressing issue due to the UK's withdrawal from the EU.
• The BSG suggests that this should be a top priority in the short to medium term.

7. Reorganization of ESAs

• Some members support the Twin Peaks model or merging EBA with the Commission.
• Others argue for maintaining the current structure in the short term due to practical difficulties and the nature of the Twin Peaks model being for supervision, not regulation.

Key Recommendations

• Enhance transparency in the drafting of level 3 texts, including consultation periods and appeal mechanisms.
• Improve regulatory coherence by promoting peer reviews and ensuring consistent application of EU law.
• Clarify the legal status of level 3 measures to prevent overreach and ensure alignment with level 1 and 2 texts.
• Reform the role of the ESAs in consumer and investor protection, including binding powers and clearer mandates.
• Ensure EU interest orientation in the decision-making of supervisory boards.
• Provide adequate resources to the BSG and other stakeholder groups to support their input.
• Reform the funding mechanism to better reflect the responsibilities and powers of the ESAs.
• Address the fragmentation of consumer protection across Member States by improving the coordination and enforcement of retail finance regulations.

Conclusion

The BSG believes that the ESAs are essential to the future of EU financial supervision and that their role should be strengthened to ensure a more effective, coherent, and consumer-focused regulatory framework. The consultation provides an opportunity to refine their operations and address current shortcomings, especially in the context of Brexit and the ongoing development of the Banking Union.