Public funding of failing banks in the European Union (LBF vol. 19) 2020/1.4.3:1.4.3 Proposal for an adjusted ESAs framework

Public funding of failing banks in the European Union (LBF vol. 19) 2020/1.4.3

1.4.3 Proposal for an adjusted ESAs framework

Documentgegevens:

mr. M. Louisse-Read, datum 01-06-2020

Datum: 01-06-2020
Auteur: mr. M. Louisse-Read
JCDI: JCDI:ADS213695:1
Vakgebied(en): Financieel recht / Europees financieel recht
Staatssteun (V)

In September 2017, a proposal was published by the Commission to adjust and upgrade the ESAs framework to ensure they can assume an en hanced responsibility for financial market supervision (the ESAs Framework Proposal).1 The ESAs Framework Proposal aims to ensure that the ESAs are adequately equipped in terms of powers, to establish a more effective governance of the ESAs – taking into account the inherent tension between the European mandate of the ESAs and the national mandate of the competent authorities that are members of the ESA Boards – and to create an appropriate funding base which allows them to allocate resources in relation to their needs to fulfil their objective. On 21 March 2019, the European Parliament and the Member States reached a political agreement on the core elements of the ESAs Framework Proposal.2 At the time of writing this dissertation, the ESAs Framework Proposal had not yet been formally adopted.

The ESAs Framework Proposal does not provide for any changes in the resolution framework. It does, however, provide for changes in the EBA Regulation that will have an effect on the resolution framework. It is proposed, for example, that the EBA be tasked with developing and keeping up to date a Union resolution handbook on the resolution of financial institutions in the Union, which sets out supervisory best practices and high quality methodologies and processes.3

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EC, Proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1093/2010 establishing a European Supervisory Authority (European Banking Authority); Regulation (EU) No 1094/2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority); Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (European Securities and Markets Authority); Regulation (EU) No 345/2013 on European venture capital funds; Regulation (EU) No 346/2013 on European social entrepreneurship funds; Regulation (EU) No 600/2014 on markets in financial instruments; Regulation (EU) 2015/760 on European long-term investment funds; Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds; and Regulation (EU) 2017/1129 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, COM(2017) 536 final (ESAs Framework Proposal). This proposal was amended by a proposal of the Commission dated 12 September 2018 (COM(2018) 646 final) in order to pursue the specific objective of reinforcing the mandate of the ESAs in matters relating to the preventing and combating of money laundering and terrorist financing.

EC, Capital Markets Union: Political agreement on a stronger and more integrated European supervisory architecture, including on anti-money laundering, 21 March 2019, IP/19/1655.

Article 29(2) of the EBA Regulation, as proposed by the ESAs Framework Proposal. See also Nuijten and Joosen TvFR 2019 for a further discussion of the ESAs Framework Proposal.