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Other supervisory powers of ESAs with regard to consumer - No action letters: in exceptional circumstances
protection where EIOPA considers that i) Solvency II Directive,
IMD/IDD and other EU legal acts listed in Article 1(2) or
The reform also reviews the powers of each of the three delegated acts may directly conflict with another relevant
ESAs, which are part of the ESFS. act, ii) the absence of delegated or implementing acts
raise legitimate doubts concerning the proper application
T- he reform changes the existing system for of these EU legal acts, EIOPA shall address a letter to
supervisory convergence with the aim of making the the Commission including an opinion on any action it
process more efficient, coherent and transparent. It considers appropriate. This may include an opinion on the
builds on existing tools, such as peer reviews, guidelines, need to extend the application date of the act in question.
recommendations while introducing new ones, for - Equivalence: the review recognises a formal role
example, opinions to the EP, Council and Commission and to the ESAs in the ongoing monitoring of the equivalence
the establishment of coordination groups at EU level. process. Each ESA should monitor the regulatory and
- The ESAs are also required to conduct open supervisory developments and the enforcement practices
public consultations before publishing their regulatory in those third countries. It shall do so in order to verify
technical standards, implementing technical standards, whether the criteria, on the basis of which those decisions
guidelines and recommendations. These consultations have been taken and any conditions set out therein, are
shall be conducted as widely as possible to ensure an still fulfilled. The Authority should submit a confidential
inclusive approach towards all interested parties and shall report on its monitoring activities to the Commission on
allow reasonable time for stakeholders to respond. an annual basis (Article 33 of Regulations).
- It is further explicitly provided that all three ESAs - Questions submitted by natural or legal persons:
are entitled to coordinate mystery shopping activities with any natural or legal person, including national competent
national competent authorities, if applicable, meaning authorities and EU institutions, is entitled to ask questions
that supervisors, disguised as customers, would check relating to the practical application or implementation
the financial players’ compliance with the rules. This could of the provisions of legislative acts referred to in Article procedure respecting the principle of gender balance. The carried out by insurance undertakings. For example,
lead to a six-month temporary ban of fraudulent products, 1(2), associated delegated and implementing acts, and Management Board is preserved. the supervisory authority of the home Member State
extendible to another six-month period, and followed by guidelines and recommendations, adopted under these ESA’s Funding will have to notify EIOPA and the supervisory authority
an automatic one-year prolongation. legislative acts. The Authority shall forward questions that of the relevant host Member State where it identifies
- It is explicitly provided that all ESAs shall take require the interpretation of Union law to the European As regards the ESAs’ funding scheme, the final text deteriorating financial conditions or other emerging
due account of the nature, scale and complexity of the Commission. preserves the existing system of contributions coming risks posed by an insurance or reinsurance undertaking
risks inherent in the business of an institution in their - ESMA is given direct supervision powers over partly from the EU budget and partly from national carrying out activities based on the freedom to provide
guidelines, recommendations, opinions, questions and third country critical benchmark administrators, as well competent authorities. It further adds the possibility services or the freedom of establishment that may have
answers, draft regulatory/implementing standards. A as in respect to data reporting service providers, except of any voluntary contribution from Member States or a cross-border effect (Article 2(3) of the Directive< Article
separate committee will be established within each for small local ones which should be identified through a observers. 152a of Solvency II- See also Article 152b on collaboration
supervisory authority which will provide advice on how delegated act. platforms).
these measures should take into account the differences The Directive amending the MiFID II Directive, the Solvency - EIOPA has also a stronger role in promoting
in the sector. II Directive and the AML Directive was published in the convergence in the validation of internal models that some
- Moreover, when carrying out their tasks, the ESAs’ Governance Official Journal of the EU in 18 December 2019 (Regulation large insurance companies use to calculate requirements
ESAs shall take account of technological innovation and 2019/2177). All language versions of this Directive can be on solvency capital (Solvency II).
the integration of environmental, social and governance The reform reviews the ESAs’ governance structure. It found here. - Furthermore, the power to give authorisation and
related factors. A committee on consumer protection maintains the principle that decisions have to be taken to supervise data reporting services providers (DRSPs) is
and financial innovation will be established within each by the Board of Supervisors and ensures a key role for The Directive will start to apply with respect to MiFID II transferred from national authorities to ESMA (MiFID II).
of the ESAs, which will bring together all relevant national the national competent authorities within the ESAs from 1 January 2022, and with respect to Solvency II and - Following the changes to the Regulation
competent authorities in order to enhance consumer governance structure. In parallel, the role and powers of AMLD from 30 June 2021. establishing EBA, subsequent changes are introduced to
protection and achieve a coordinated approach to the the Chairperson are reinforced. The Chairperson should - Under this Directive, the cooperation between the AML Directive in relation to its new role as the central
regulatory and supervisory treatment of new or innovative be selected on the basis of merit, skills and experience the NCAs and also between EIOPA and the NCAs is supervisory authority for AML issues.
financial activities. of financial supervision and regulation, with the selection strengthened in relation to cross-border activities

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