The European Union wants to centralize market supervision and want the banks to pay for it, according to the bloc’s financial services chief, indicating how it will look to regroup after Brexit. A more united supervisory program is needed to unify the EU’s capital market, European Commission Vice President Valdis Dombrovskis reported on Thursday.
Britain has long pushed off attempts by Brussels to increase EU-level supervision of London, by far Europe’s largest financial center, but it will have no input over EU policy after Britain leaves in 2019.
“We think that national supervisors in the EU should follow the same supervisory priorities,” Dombrovskis stated in Estonia, where EU finance ministers meet on Friday.
“We can go further on the path toward supervisory convergence by empowering the European Securities and Markets Authority (ESMA) to directly supervise certain firms,” Dombrovskis added, also stating he will suggest that banks help pay for their supervision by regulators like ESMA.
“They should coordinate national technological innovation tools such as innovation hubs or regulatory sandboxes,” he stated.
The three regulators would also play a key role in mobilizing and directing capital towards “sustainable and green finance”.
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“The Commission is standing by its proposals to introduce these standards in Europe, as we have introduced all other international standards,” Dombrovskis concluded.