ESMA, EIOPA and EBA: EU rule makers & indirect supervisors - - PowerPoint PPT Presentation

ESMA, EIOPA and EBA: EU rule makers & indirect supervisors

Antoine Van Cauwenberge

Compliance Day 1 8.1 1 .20 1 9

I. I. EU Institutio ns EU Institutio ns and Ag enc ies and Ag enc ies II. II. ESFS ESFS III.

• III. ESMA

ESMA IV.

• IV. EIOPA

PA V.

• V. EBA

EBA VI.

• VI. ESA

SAs s Rev Review ew

No te: V No te: View iews s expres xpressed sed ar are per e perso nal vi so nal views

Overview

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• I. EU INSTITUTIONS & AGENCIES

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EU Agencies ESMA/ EBA/ EIOPA

• II. EUROPEAN SYSTEM OF FINANCIAL

SUPERVISION

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6

Mic r Mic ro -pru

• -pruden

enti tial su l supervis pervisio n io n

Eur Euro pean pean Supervi Superviso so ry ry Aut Autho ho ri riti ties (ESA es (ESAs) s) Jo int C Jo int Co mmitte

• mmittee o f the ESAs

e o f the ESAs Euro pean Banking Autho rity (EBA) Euro pean Insurance and Occupatio nal Pensio ns Autho rity (EIOPA) Euro pean Securities and Markets Autho rity (ESMA) Natio nal banking superviso rs Natio nal insurance supervisors and pensio n fund supervisors Natio nal market, pro duct and rules

• f conduct

superviso rs

Ma Mac r c ro -pru

• -pruden

dential s ial supe upervisio rvisio n Euro pean n Syst Systemic c Risk k Bo ard (E (ESR SRB) B) Genera General Bo ard l Bo ard

• ECB President and Vice-President
• Governors of the national central banks
• Chairpersons of the ESAs (EBA, EIOPA

& ESMA)

• Chair and two Vice-Chairs of the

Advisory Scientific Committee

• Chair of the Advisory Technical

Co mmittee

• A member of the European

Commission Me Me mbe mbe rs witho ut rs witho ut vo vo ting rig ting rights hts

• One representative per Member State
• f the national supervisory authority
• President of the EFC

Steer teerin ing C g Co m

• mmit

mittee tee Advis Adviso ry Co mmi

• ry Co mmittee

ttees Sec retari Sec retariat at

FSMA

NBB NBB NBB NBB

FSMA

Information on micro-prudential developments Information on systemic risks, warnings and recommendations

Bank anking unio ng unio n ( n (Eur Euro zo

• zo ne

ne) NBB BB

• Single supervisio n mechanism
• Single resolution mechanism

Co m p lianc e Day 1 8.1 1 .20 1 9

• III. ESMA

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Steven Maijoor Verena Ross

ES ESMA MA’s missio n missio n

1 . Investor protection: to have the needs o f financial consumers better served and to reinforce their rights as investors while acknowledging their responsibilities; 2. Orderly markets: to promo te the integrity, transparency, efficiency and smooth functio ning o f financial markets, and ro bust market infrastructures; and 3. Financial stability: to strengthen the financial system in order to be capable of withstanding shocks

ES ESMA MA’s m s main ain ac ac tiv tivities ities:

1 . Assessing risks to investors, markets and financial stability 2. Completing a single rulebook for EU financial markets 3. Promoting supervisory convergence 4. Directly supervising specific financial entities

• 1. Mission

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• 2. Governance

9

CCP Supervisory Committee

Co m p lianc e Day 1 8.1 1 .20 1 9

• 3. Standing Committees

Secondary Markets Standing Committee Elisabeth Roegele Investment Management Standing Co mmittee Gabriela Figueiredo Dias Post-Trading Standing Co mmittee Ro bert Ophèle Credit Rating Agencies Technical Co mmittee Verena Ro ss Corporate Reporting Standing Committee Ana María Martínez- Pina García Co rporate Finance Standing Committee Benoit de Juvigny Market Integrity Standing Committee Nicoletta Giusto Data Standing Co mmittee

• Chr. Buttigieg

Investor Protection and Intermediaries Standing Committee Merel van Vroomhoven Financial Innovatio n Standing Committee Jean-Paul Servais Supervisory Convergence Standing Co mmittee João Sousa Gião Co mmittee of Economic and Markets’ Analysis Carmine Di Noia Commodity Derivatives Task Force Elisabeth Roegele IT Governance and Management Gro up Nicolas Vasse

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1 ) Supervisory Convergence 2) Assessing Risks – publication of annual statistical report series based on EMIR, AIFMD and MiFID II data; cooperation on risk analysis; Trends Risks Vulnerabilities reports; 3) Single Rulebook – implementation of the Capital Markets Union, Fintech and Sustainable Finance Action Plans, developing the rules under EMIR 2.2/ EMIR Refit and reviewing MIFID II/ MiFIR; 4) Ensuring effective direct supervision of credit rating agencies (CRA-28) & trade repositories (TR- 9). New responsibilities for the supervision of securitisation repo sitories, data service providers, third country central counterparties (CCPs), other third country firms in a number of areas & critical benchmarks (including mandatory contribution of panel banks)

• 4. Priorities

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• Guidelines (Co mply & explain),Q&As, o pinions
• Peer reviews natio nal superviso ry practices
• Binding mediation between NCAs
• Common IT projects
• Coordination groups
• Role in colleges (CCPs, benchmarks); Coordinating third country MoUs
• 5. Supervisory convergence (1/ 2)

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• 5. Supervisory convergence (2/ 2)

1 3

Mo nit Mo nito ring

• ring the impac t o f Br

the impac t o f Brexit o n supe xit o n superviso ry c rviso ry co n

• nver

erg enc g ence

(Supervisory Coordination Network)

Co o rdi

• o rdinatio n/

natio n/ measure measures s o n

• n CFDs a

CFDs and binary o pt nd binary o ptio ns io ns

(Pro duct intervention)

MiFI MiFID II/ MiF D II/ MiFIR im IR implement plementat atio n io n Peer re Peer revie views a s and Fo llo nd Fo llow-ups

• ups

(PR on EMIR Data Quality, FU on suitability)

Enfo r Enfo rc e c ement Netwo rk ment Netwo rk

(bringing together authorities’ enforcement specialists)

Enhanc ement Enhanc ement o f the Int

• f the Inter

erac tiv ac tive Sing le Ruleb e Sing le Rulebo o k

• o k

(now also includes CRA Regulation, MiFID II / MiFIR)

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IV. EIOPA

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Gabriel Bernardino Fausto Parente

• Strengthen

the protection

• f

consumers (especially Conduct of business supervision (IDD, PRIIPs))

• Support the functioning of the EU internal market in the

field of pensions and insurance

• Strengthen the

financial stability of the insurance and

• ccupational pensions sectors
• 1. EIOPA Strategic priorities

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• The persistent low interest rate environment remains challenging for

insurers and pensio n funds: 2020 review o f So lvency II (evo lutio n rather than revo lutio n)

• Move from regulation to indirect supervision: increased focus on

cross-border cases by setting up dedicated platforms for the benefit

• f consumers. EIOPA has over the last year facilitated 1

1 platforms invo lving natio nal superviso ry authorities fro m several Member

• States. Fo r each platfo rm, EIOPA has provided co ncrete superviso ry

recommendations to the home supervisor.

• Early

intervention approach (product intervention for group

• f

products)

• Climate change
• Digitalisation and cyber risk
• CMU (demand side, e.g. PEPP)
• 2. EIOPA Focus areas

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V. EBA

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José Manuel Campa

EBA Governance

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• VI. ESAs REVIEW

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• 1. Aims of the ESAs review (1/ 2)

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Develop EU capital markets & deal with cross-border risks after Brexit

ESMA UK FCA US SEC

• 1. Aims of the ESAs review (2/ 2)

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Strengthening of the ESAs’ coordinatio n powers over day-to-day supervision by competent authorities: more emphasis on consumer protection (e.g. coordination of mystery shopping) More independence concerning decisions on peer reviews (findings may result in recommendations to NCAs Common supervisory priorities Coordination groups Cooperation platforms (EIOPA)

• 2. The ESAs’ indirect supervisory

tasks

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• 3. EU Coordination re AML

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• Crit

Critical ical benchmar benchmarks ks such as EURIBOR and EONIA.

• Data

Data repo epo rti rting ng ser servic vic es es which enable the reporting

• f

transactio ns in financial instruments to regulators and the market.

• The EMIR review introduces a CCP Supervisory Committee in

charge o f supervisory convergence activities in relation to EU- CCPs and the recognition and supervision of third country CCPs

• Investment Firms Review extends ESMA’s role regarding third

country investment firms

• 4. ESMA’s direct supervisory tasks extended

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