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European Supervisory
Authorities (ESAs) and BIPAR
sumers receive - be it in a digital or non-digital environment - relevant, clear and meaningful information, so that they Background The European System of Financial Supervision (ESFS) was introduced in
can take an informed decision about their insurance products. Lastly, BIPAR added that the principle of proportionality 2010. It consists of the European Systemic Risk Board (ESRB) and the 3
should be introduced in any revised DMD, in particular as its all-encompassing scope covers the entire financial sector, European supervisory authorities (ESAs), namely: the European Banking
which means that it applies to big firms and SMEs alike. The European Commission adopted a Authority (EBA), the European Securities and Markets Authority (ESMA) and
proposal at the end of 2017 to amend the European Insurance and Occupational Authority (EIOPA).
Next steps five EU legal texts (Solvency II, MiFID II ,
Revision of the European system of financial supervision
MiFIR and ESAs’ founding texts) aiming
BIPAR will continue to work with the European Commission to help identify areas where the regulatory framework could
be improved. The Commission is now expected to publish the conclusions of this evaluation exercise in 2020. “to improve the powers, governance The Regulation amending the three ESAs founding regulations was
and funding of the ESAs; for banking published in the Official Journal of the EU in 18 December 2019 (Regulation
2019/2175). All language versions of this Regulation can be found here.
(EBA), for securities and financial
BIPAR welcomes this revision in general.
markets (ESMA), and for insurance and
pensions (EIOPA). The Regulation entered into force on the 1st January 2020 and applied
In September 2018, the European from the same date. It is binding in their entirety and directly applicable in
the Member States.
Commission further proposed to
amend its September 2017 proposal ESAs’ powers
in order to strengthen the role of EBA
Anti-money laundering powers of EBA
in protecting the financial system
from money laundering and terrorist
The reform reinforces the role of the EBA as regards risks posed to the
financing risks (AML/CFT). financial sector by money laundering and terrorist financing (ML/FT)
activities. The powers related to the prevention and mitigation of risks of
money laundering will now be centralised for all financial institutions at
the EBA.
- EBA has the mandate for collecting information from national
competent authorities, analysing and further disseminating such
information to ensure that all relevant authorities supervise ML/FT risks
in an effective and consistent manner and that they cooperate and share
information.
- To this end, EBA will establish a central database, develop common
standards laying down definitions and facilitating practical implementation
of data collection, will perform risk assessments on competent authorities
and facilitate cooperation with non-EU countries on cross-border cases.
- EBA now has the power to act immediately when EU anti-money
laundering rules are broken at national level. Precisely, where there are
indications of material breaches by a financial sector operator, EBA may
request the national competent authority to launch an investigation and
impose sanctions on this operator.
- EIOPA and ESMA are entitled to submit written observations
on any draft decisions of the committee. Furthermore, in cases where a
draft decision concerns financial institutions subject to EIOPA’s/ESMA’s
jurisdiction, the prior agreement of EIOPA/ESMA is required before any
AML decision is taken by EBA.
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