THE EUROPEAN Commission has promised to “prioritise fintech” in its proposals to revamp its financial supervision strategy.
According to the Commission, the reforms will lead to further financial integration and a full Capital Markets Union, promoting jobs, growth and investments in the continent.
The three European Supervisory Authorities (ESAs), which were set up following the financial crash and supervise individual sectors and institutions, will enjoy improved funding. They will set EU-wide supervisory priorities, ensuring that individual authorities are consistent, and monitor how firms delegate and outsource certain business functions to non-EU countries, in order to properly manage risks and ensure the rules cannot be circumvented.
According to the European Commission, ESAs will “prioritise fintech and will coordinate national initiatives to promote innovation and strengthen cybersecurity”, as well as promoting the concept of sustainable finance.
This will include coordinating ways to boost innovation, such as the ‘sandboxes’ recently utilised by the UK’s Financial Conduct Authority.
Valdis Dombrovskis, vice-president for financial stability, financial services and Capital Markets Union, said that financial markets were changing fast and it was important for the commission to adapt accordingly.
“We are seeing renewed cross-border integration, new opportunities in fintech and a boom in sustainable and green finance,” he said. “The EU needs to act as one player so that we can stay ahead of the curve. More integrated financial supervision will make the Economic and Monetary Union more resilient. These pragmatic proposals will also make it easier for our companies to operate cross-border and build consumer trust.”
The proposals will now be discussed by the European Parliament and the Council.