GBIC comments on the European Commission's consultation on supervisory convergence and the single rulebook (ESA review 2021)
In spring 2021, the European Commission launched a public consultation on the ESAs, which marks the start of the current ESA review. The regular ESA reviews provide an opportunity to assess and to improve on the regulatory framework as well as the practice of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA).
The GBIC is of the opinion that the current system of financial supervision, which comprises the ESAs and the national competent authorities (NCAs), should generally remain in place, as it best suits the different market structures of the Member States. The NCAs have in-depth knowledge of the specifics of the respective national markets and thus the necessary regulatory expertise. The 2019 ESA review provided meaningful and sufficient adjustments to the ESA’s mandate, and the GBIC currently does not see the need for additional elements.
We are also of the opinion that the process for ESA Q&As must be improved, as the Q&As issued by the ESAs, while not formally binding, achieve almost legal status in practice. Most importantly, Q&As must be fully in line with Level 1 and Level 2 texts. Another improvement would be to consult important Q&As beforehand. In addition, it must be possible to have the answers of the ESAs reviewed by an external body.