European Commission considers beefing-up powers of pan-EU financial supervisors
The Financial Times reports that the European Commission is considering plans to beef-up the powers of the three pan-EU financial supervisors, in a bid to address potential supervisory loopholes ahead of Brexit. Valdis Dombrovskis, a vice-president of the Commission, is quoted as saying, “Already you hear there are some disagreements among [EU] member states whether or not some kind of regulatory arbitrage is taking place, so indeed it strengthens the need of the case for regulatory convergence.” The article notes that one of the options under consideration would see the European Securities and Markets Authority (ESMA) been given powers to directly supervise clearing houses, as well as greater oversight over cross-border investment funds.
Source: The Financial Times
Let's all consider the true meaning of the Commission's goals by examining these phrases:
"potential supervisory loopholes""regulatory arbitrage""the need for regulatory convergence"
The EU is terrified that Brexit will mean that it is losing its stranglehold on ever increasing financial regulation.