European securities regulators are set to shift their focus from making rules to implementing them, and enforcing them over the next several years.
The European Securities and Markets Authority (ESMA), which was created in 2011 following the global financial crisis, published its strategy for 2016-20 on Monday that sets out its planned evolution into a new phase of operations for the regulator.
Specifically, the ESMA will shift its strategic focus from rulemaking toward implementation and harmonizing supervision within the European Union (EU) in the years ahead. “As the bulk of post-crisis rulemaking is now lying behind us, it is natural that the focus of ESMA’s works will change too. In the coming years, ESMA’s work will be a lot more about implementing rules and about convergence of supervisory practices,” said Steven Maijoor, chairman of the ESMA.
”Ensuring that EU rules are implemented in a harmonized manner is the logical next step toward achieving a truly single market for financial services that serves investors, market participants and the economy at large,” he added.
As part of the regulator’s planned shift, it is targeting three key objectives: investor protection, ensuring market integrity and financial stability. The ESMA also plans to increase its resources to strengthen its ability to identify and assess risks to investors and financial stability in the EU. It will also commit more resources to promote supervisory convergence, and aims to strengthen its role as a direct supervisor. Finally, the regulator expects to decrease the resources devoted to developing a single rulebook for EU markets.