France’s Autorité des Marchés Financiers (AMF), has proposed three key changes to the European Securities and Markets Authority (Esma) in response to the European Commission’s consultation on reviewing the three European supervisory authorities – which in addition to Esma includes the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (Eiopa).
The first change proposed is on the way the Esma board makes decisions. The AMF says that there should be an extension of qualified-majority voting for all important decisions; that there should be a change the the way the chairperson is appointed; and that permanent members be allowed to sit on the management board alongside representatives of national authorities that sit on a rotating basis.
The second area of change the AMF would like to see includes reforming the way Esma is financed. It suggests greater involvement by the industry, based on a breakdown according to the size of the financial industry in each member state of the EU. As part of greater convergence of supervision, the AMF also suggests that Esma should be encouraged to pursue further intervention and, where required, on site inspections.
Finally, the French regulatory proposes Esma take on central roles in a number of areas, which may include:
- The initial assessment process followed by monitoring of the equivalence of the regulatory framework of a country outside the European Union
- The collection and reliability of data transmitted by financial markets to European supervisors and the direct supervision of data providers under the revised Markets in Financial Instruments Directive (MiFID 2)
- Direct supervision of critical benchmark administrators
- Direct supervision of central counterparties