The European system of financial supervision

The European system of financial supervision (ESFS) was introduced in 2010. It consists of:

Founding legislation

Both the ESRB and the 3 ESAs started their operation in January 2011, following the adoption of a package of legislative acts. These comprise

In 2011 the EU adopted a further Omnibus II directive to clarify the powers of the new authorities, particularly in the insurance sector.

The adoption of these laws followed the proposals of a Commission communication on financial supervision and the recommendations of the de Larosière expert group. This group was mandated by the Commission to give advice on how to strengthen European supervisory arrangements in light of the failures of financial supervision exposed by the financial crisis. The de Larosière group issued its report in February 2009.

Review of the ESFS

The regulations establishing the ESRB and the ESAs include provisions for the Commission to publish a general report on the operation of the new authorities and the ESFS as a whole, and a review of the mission and organisation of the ESRB. The Commission issued these reports in August 2014.

Building on these reports and taking into account the results of public consultations launched in 2013, 2016 and 2017, the Commission adopted a package of proposals to strengthen the ESFS in September 2017. The proposals aim to improve the mandates, governance and funding of the 3 ESAs and the functioning of the ESRB. This will ensure stronger and more integrated financial supervision across the EU.

See also: