The whole legislative package on financial regulation and supervision of financial markets has been published in the Official Journal. The contents of the package:
1. Regulation (EU) No 1092/2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board
Regulation 1092/2010 establishes European System of Financial Supervision (ESFS), bringing together the actors of financial supervision at national level and at the level of the Union, to act as a network. The European Systemic Risk Board (ESRB) is established as a new independent body, covering all financial sectors as well as guarantee schemes. The ESRB is part of the European System of Financial Supervision (ESFS), the purpose of which is to ensure the supervision of the Union’s financial system. The ESFS comprises of
- the ESRB;
- the European Banking Authority;
- the European Insurance and Occupational Pensions Authority;
- the European Securities and Markets Authority;
- the Joint Committee of the European Supervisory Authorities;
- the competent or supervisory authorities in the Member States.
The ESRB is responsible for conducting macro-prudential oversight at the level of the Union and has no legal personality.
2. Regulation (EU) No 1093/2010 establishing a European Banking Authority
Regulation 1093/2010 establishes a European Banking Authority (EBA). The EBA has some quite broad competences, including preventing regulatory arbitrage, guaranteeing a level playing field, strengthening international supervisory coordination, promoting supervisory convergence and providing advice to the EU institutions in the areas of banking, payments, e-money regulation and supervision, and related corporate governance, auditing and financial reporting issues. EBA can also temporarily prohibit or restrict certain financial activities that threaten the orderly functioning and integrity of financial markets or the stability of the whole or part of the EU financial system.
3. Regulation (EU) No 1094/2010 establishing a European Insurance and Occupational Pensions Authority
Regulation 1094/2010 establishes a European Insurance and Occupational Pensions Authority (EIOPA). EIOPA has the same powers as EBA in the area of activities of insurance undertakings, reinsurance undertakings, financial conglomerates, institutions for occupational retirement provision and insurance intermediaries.
4. Regulation (EU) No 1095/2010 establishing a European Securities and Markets Authority
Regulation 1095/2010 establishes a European Securities and Markets Authority (ESMA). ESMA has the same powers as EBA in the area of securities, including matters of corporate governance, auditing, financial reporting, take-over bids, clearing and settlement and derivative issues.
Directive 2010/78/EU makes changes to existing legislation concern the definition of the scope of certain powers of the ESA, the integration of certain powers established in legal acts of the Union, and amendments to ensure a smooth and effective functioning of the ESA in the context of the ESF.
6. Regulation (EU) No 1096/2010 conferring specific tasks upon the European Central Bank concerning the functioning of the European Systemic Risk Board
Regulation 1096/2010 includes provisions for the involvement of the ECB in the functioning of the ESRB, including providing administrative and statistical support.