MEPs strengthen EU financial watchdogs

money 2019

(Sara Kurfeß, Unsplash)

This article is brought to you in association with the European Commission.


MEPs approved rules strengthening the EU financial supervision needed for safer financial markets, fighting money laundering, and protecting consumers.

The new law, adopted on Tuesday by 521 in favour, 70 against, with 65 abstentions, already agreed with EU ministers and spearheaded through Parliament by Othmar Karas (EPP, AT) and Pervenche Berès (S&D, FR), consists of an upgrade of the EU financial supervisory authorities established in 2010.

European consumers, investors and businesses will benefit from safer and more integrated financial markets thanks to the reform, which is also essential to pave the way for completing the banking union and the capital markets union, two flagship projects for a stronger single market. It also includes provisions to promote financial products which support environmental, social and good governance initiatives (ESGs).

More empowered finance watchdogs

The revision of the supervisory architecture will increase the responsibilities of the EU watchdogs for banking, for securities and financial markets, and for insurance and pensions, and improve their governance structure. This will allow them to keep up with the increasingly complex world of finance, thereby protecting consumers and taxpayers better, and settle disputes and breaches of EU law more effectively.

Helping consumers and sustainable finance

To ensure a uniform application of EU rules and promote a true Capital Markets Union, the reform also entrusts the European Securities and Markets Authority (ESMA) with direct supervisory power in specific financial sectors, such as markets in financial instruments or benchmarks. ESMA will also coordinate national actions in the areas of Financial Technologies (FinTech) and promote sustainable finance, including when conducting EU-wide stress tests to identify which activities could have a negative effect on the environment.

Consumers will benefit from various new powers that will be given to the EU supervisory authorities, such as the power to coordinate competent authorities’ mystery shopping activities to measure compliance with regulation, and reinforcing powers to prohibit or restrict certain financial activities considered damaging to consumers.

New powers to improve fight against money laundering

Finally, the new law strengthens the European Banking Authority’s (EBA) mandate, tasking it with preventing the financial system from being used for money-laundering and terrorist financing. Specifically, EBA will now have the power to adopt measures to prevent and counter money laundering and terrorist financing. National authorities will be obliged to provide the EBA with information necessary to identify weaknesses in the EU financial system regarding money laundering.

Next steps

EU ministers will now have to formally confirm the deal before the reform enters into force.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

LGBTQI+ and medicine

This Indian school accepts plastic waste instead of fees

Health inequalities: private healthcare providers versus state healthcare providers

All sides in Yemen conflict could be guilty of war crimes, UN experts find

Fostering intergenerational solidarity and cooperation through age-friendly environments: the right answer to Europe’s demographic challenge

Why COVID-19 poses a particular threat in the world’s slums

At last Britain considers a super-soft Brexit

Mobile World Congress 2015 first to debate EU’s new stance on Net Neutrality and Roaming Charges

New SDG Advocates sign up for ‘peace, prosperity, people’ and planet, on the road to 2030

UN chief condemns attack targeting international forces in northern Mali

Fighting Terrorism Online: EU Internet Forum committed to an EU-wide Crisis Protocol

Cancer is a growing global threat and prevention is key, UN study shows

A very good morning in European markets

Bureaucracy in the member states again the obstacle for long due strong European Hedge Funds

Parliament requests further action to save EU tourism

Better protection against non-cash payment fraud

Amid Venezuela exodus, UN refugee envoy Angelina Jolie visits camps on Colombian border, appeals for humanity, more support

Finnish Council Presidency priorities debated in plenary

Wide-ranging reforms needed to ensure Italy’s economic recovery

New UN data tool shows ‘mismatch’ between government aid and places modern slavery exists

Corruption is rife in the COVID-19 era. Here’s how to fight back

What does the world really think about the UN Sustainable Development Goals?

The historic accomplishment of a seamless EU patent and intellectual property space

‘Stealing’ food from hungry Yemenis ‘must stop immediately’, says UN agency

What UK and EU risk if Brexit “wins” these elections

4 ways blockchain will transform the mining and metals industry

Quality Education on the table at the European Parliament

ECB bets billions on Eurozone’s economic recovery

Stateless Rohingya refugee children living in ‘untenable situation’, UNICEF chief

Dramatic drop in South Sudan political violence since peace agreement signing

State aid: Commission approves German aid scheme to support airports affected by the coronavirus outbreak

Iran protests: Live ammunition reportedly used, says UN human rights office

What changes in the EU as from today

UN peacekeepers warn of increasing global challenges

Deal on EU funds for common asylum, migration and integration policies up to 2027

Coronavirus: Using European supercomputing, EU-funded research project announces promising results for potential treatment*

How to build an entrepreneurial university

UNICEF delivers medical supplies to Gaza in wake of deadly protests

EU job-search aid worth €2 million for 500 former shipbuilding workers in Spain

How COVID-19 is taking gaming and esports to the next level

Powering through the pandemic

Permanent structured cooperation (PESCO) on the table of NATO Defense Ministers amid US concerns

A European young student speaks about the Youth Policies of the European Commission

7 of the world’s 10 most polluted cities are in India

South Africa’s cabinet is now 50% women for the first time ever

Ethiopian Prime Minister Abiy Ahmed wins Nobel Peace Prize

This chart shows the total number of COVID-19 cases and recoveries so far

Climate change and health: creating global awareness and using earth resources wisely

The Swiss will pay dearly for voting out fellow Europeans

Digital business is Europe’s best hope to get back to growth

Prospect of negotiated peace in Afghanistan ‘never been more real’ – UN mission chief

5 world-changing ideas: our top picks for World Creativity and Innovation Day

Why exporters need to mind the trade finance gap

Why collaboration will be key to creating the workforce of the future

Banking Union: ECOFIN and Parliament ready to compromise

Encouraging progress made in 2018, in ‘zero tolerance’ effort to end sexual exploitation and abuse across UN

The Fourth Industrial Revolution is changing how we grow, buy and choose what we eat

5 reasons why CEOs must care about safeguarding nature

Antitrust: Commission publishes report on the impact of the Interchange Fees Regulation

The Oslo model: how to prepare your city for the electric-vehicle surge

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s