Verena Ross has spoken on progress towards a “genuine” single European financial market, focusing on the role of regulation and supervision. She commented that the EU now has a robust and integrated regulatory framework but stressed the importance of supervision. She discussed the importance of taking the time and effort required for proper implementation and of ensuring supervisory consistency at an early stage. She said this does not mean one-size-fits-all but rather convergence and comparable regulatory outcomes. She then moved on to describe ESMA’s work on MiFID 2, including how it uses Guidelines, Q&As and peer reviews. She also looked at cross-sector work that the ESAs carry out.
She then turned to Brexit, saying it reinforces the urgency for the EU to progress the CMU but note Brexit makes it harder and makes the EU realise the difficulties that remain because of significant national differences. It also underlines the need to ensure an appropriate third-country framework.
She then stressed the importance of the single market not permitting any regulatory arbitrage between Member States, with reference to national supervisors being approached by UK firms. As a result, the EU set up a forum for national supervisors to discuss “live” discussions with UK firms looking to set up in the EU. She also noted that Brexit has shone a spotlight on the EU’s relationship with third countries more generally, and referred more widely to the ESAs’ review and the proposals for EMIR 2.2. She said it is critical EMIR 2.2 is in place by March 2019.