From design to delivery: The AFM and the AMF identify five enablers for effective EU-level market supervision
The Dutch Authority for the Financial Markets (AFM) and the French Autorité des Marchés Financiers (AMF) support the European Commission’s proposals to strengthen supervisory convergence and market integration through the Market Integration and Supervision Package (MISP). As discussions on the future of European capital markets continue, the AFM and the AMF have identified five key enablers that are essential for effective and credible centralised supervision at EU level.
In short:
- MISP: an opportunity to strengthen European capital markets
- Building an effective supervisory framework with ESMA at its centre
- Five enablers for successful centralisation
MISP: an opportunity to strengthen European capital markets
European capital markets are on the verge of a major transformation. Recent policy initiatives, including the Draghi and Letta reports, have highlighted the need for deeper market integration to better support the funding of the European Union’s strategic objectives. The European Commission’s Market Integration and Supervision Package responds to this ambition by strengthening the role of the European Securities and Markets Authority (ESMA).
Building an effective supervisory framework with ESMA at its centre
For the AFM and the AMF, the debate is no longer whether supervision should be centralised in certain areas, but how centralisation can be implemented in a successful and cost-effective manner. Centralised supervision seeks to deliver consistent outcomes across the EU, to remove duplicative compliance burdens for cross-border firms, and to allow supervisory resources to be deployed where they have the greatest impact. In that respect, effective supervision should be risk-based, adaptive and proportionate. Supervisors must also be able to respond to innovation, emerging risks and new business models. An effective supervisory governance should rely on a robust framework for cooperation and coordination between ESMA and national competent authorities, with ESMA as the decision maker.
Five enablers for successful centralisation
The five key enablers supporting the successful implementation of a centralised supervision are 1) risk-based and adaptive supervision, 2) proportionate and transparent funding, 3) independent, transparent and accountable governance, 4) data centralisation, and 5) effective enforcement. Together these enablers will help ensure that centralisation delivers its intended benefits and strengthens European capital markets while maintaining the trust of market participants and society.
The MISP is a unique opportunity to strengthen European capital markets and enhance supervisory effectiveness across the EU. By ensuring that the right conditions are in place, we can build a centralised supervisory framework that is nimble and capable of meeting the needs of increasingly integrated European markets.
About the AMF
As an independent public authority, the Autorité des Marchés Financiers (AMF) protects savings invested in financial products, ensures that investors receive clear and reliable financial information, and maintains orderly financial markets. Through its engagement with European and international regulatory bodies, the AMF contributes to financial stability and effective regulation. The AMF develops and enforces regulatory standards, supervises market participants and market infrastructures, and takes action against misconduct and regulatory breaches. It also supports the transformation of the financial sector, particularly in the areas of innovation and sustainable finance. As an impact-driven regulator, the AMF acts in the public interest.
Regulate finance, reinforce confidence.
Visit our website: https://www.amf-france.org/en
About the AFM
The Dutch Authority for the Financial Markets (AFM) has been responsible for supervising the operation of the financial markets since 1 March 2002.
This means that AFM supervises the conduct of the entire financial market sector: savings, investment, insurance, loans, pensions, capital markets, asset management, accountancy and financial reporting. The AFM is committed to promoting fair and transparent financial markets. As an independent market conduct authority, we contribute to sustainable financial well-being in the Netherlands.
Visit our website: https://www.afm.nl/en
Press contacts:
- AMF Communications Directorate - Tel: +33(0)1 5346 6025 - media [at] amf-france.org (media[at]amf-france[dot]org)
- AFM - Dutch Authority for the Financial Markets - Charlene Zikmund - Tel : +31(0)6 2942 0887 - charlene.zikmund [at] afm.nl (charlene[dot]zikmund[at]afm[dot]nl)
