Navigating the minefield of the ESA review. ECMI Commentary No. 49 / 27 February 2018

In its review of the European Supervisory Authorities (ESAs), the European Commission is proposing a radical expansion of the competences of the European Securities Markets Authority (ESMA), but without changing the final decision-making structure of the ESAs. Such a change of scale, creating important new powers for ESMA in capital markets’ supervisory functions for the EU-27, was not expected by most market participants. With the biggest financial centre soon leaving the EU, the review introduces some provisions on future cooperation with third countries but outside any strategic thinking about the competitiveness and attractiveness of the post-Brexit Capital Markets Union (CMU)