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 Milestones

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

Impact of high-fats food regimen on immune activity, tumor growth.

European Youth Capital 2019 announced: Novi Sad, Serbia

Germany fears that Americans and Russians want to partition Europe again

Governments and non-state actors need to take urgent action to meet Paris Agreement goals

Parliament to ask for the suspension of EU-US deal on bank data

Trump ostracized by his party and world elites but still remains in course; how can he do it?

College read-out by HR/VP Josep Borrell on the New Transatlantic Agenda for Global Change

Don’t let the virus quarantine your mind –Ways to strengthen “Mental” immunity

Benefits of rural migration effect often overlooked, new UN report suggests

At Ministerial session, UN regional office in Beirut to focus on technology for sustainable development

Is it time we were all given the ‘right to disconnect’ from work while at home?

More people now plan to get a COVID-19 vaccine than in December

Decarbonizing shipping – why now is the time to act

Somalia: UN congratulates Puntland region’s newly-elected President

Why the minutes and the months matter most to young people during the COVID-19 crisis

Looking for European Youth at 2021 Youth Day “European Youth in China”: Short Video Contest Announcement

Supply chains have been upended. Here’s how to make them more resilient

Coronavirus Global Response: European Union organises a humanitarian air bridge to Côte d’Ivoire

Rule of law in Poland: MEPs point to “overwhelming evidence” of breaches

Talent is worldwide. Opportunity is not. How can we redistribute it?

DPRK reports ‘little progress’ since historic June 2018 summit with US

Four lessons from Africa on building effective business ecosystems

Writing a greener story in Asia and the Pacific amidst COVID-19 outbreak

Burned in the Amazonian forest: Your health may be in danger

A new paradigm for collaboration: mission-based ecosystems

Guinea-Bissau: Upcoming elections vital to prevent ‘relapse’ into instability, says UN envoy

8 amazing facts to help you understand China today

Refugee crisis update: EU lacks solidarity as migration figures drop

5 ways to boost sustainable trade in the world’s poorest countries

Here’s how the WTO can help address plastic pollution

We are ‘burning up our future’, UN’s Bachelet tells Human Rights Council

How digital remittances can help drive sustainable development

The rise and rise of media on your mobile phone – in one chart

From drones to health data, how Japan can power ahead

This company lets you set your own salary

UN chief appeals to G7 leaders for ‘strong commitment’ and political will to tackle climate emergency

A Sting Exclusive: “Digital iron curtain makes no sense in 5G era”, by China’s Ambassador to EU Mr. Zhang Ming

Peatlands are under threat. Here’s why we must act now to save them

Climate activist Greta Thunberg urges MEPs to put words into action

State aid: Commission approves €20 million voucher scheme to support access to broadband services by students in Greece

More state aid to big firms, no special provisions for the SMEs

No better year for the EU’s weak chain links

Better understanding the psychological impact caused by the COVID-19 Pandemic

A European student just sets the question of the day: What kind of education policies are missing in Europe?

‘Once lost, hearing doesn’t come back,’ World Health Organization warns on World Hearing Day

We had the hottest June ever this year – this is what happened around the world

Despite violence, ‘tremendous hunger’ for peace in Afghanistan: top UN official

The more we learn about Antarctica, the greater the urgency to act on climate change

FROM THE FIELD: Crisis in Kassala FROM THE FIELD: Crisis in Kassala

The current devaluation of primary health care professionals

Q and A on the draft digital copyright directive

Green Deal: How MEPs wish to channel EU investment to sustainable activities

‘Words must never be met with violence’ urges UN, following Taliban threat to journalists

Promoting rule of law and fundamental rights in the EU

Chart of the day: When do young Europeans leave home?

‘Urgent need’ to stop Mali violence with ‘effective’ military response: UN expert

WEF Davos 2016 LIVE: “No other problem has jeopardised the EU as much as the refugee question” Joachim Gauck, President of the Federal Republic of Germany, cries out from Davos

Could switching between summer and winter time end in 2021?

4 key steps towards a circular economy

14 ways to protect your mental health in the pandemic, according to Public Health England

More Stings?

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