European Securities and Markets Authority
The 2008 financial crisis revealed many shortcomings in financial supervision. It exposed the lack of cooperation, coordination and consistency between Member States in their national management of the practices of financial institutions. The ESMA aims at restoring Europeans’ trust and preventing risks of destabilising the global banking system in the securities sector.
The Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishes the European Securities and Markets Authority (ESMA). It forms part of the package of measures implemented to reform the European System of Financial Supervision (ESFS) which creates three other organisations to monitor financial activities:
Supervision of the financial system of the European Union (EU) is further reinforced by the activities of:
Establishment and legal status of the ESMA
The objective of the ESMA is to safeguard the stability and effectiveness of the financial system. It acts mainly in the field of activities of:
In addition, the scope of ESMA action covers:
The ESMA has legal personality and has its seat in Paris.
Tasks and powers of the ESMA
The ESMA is responsible for carrying out certain tasks, such as:
In order to meet these objectives, the ESMA has a leading role which consists in particular of:
The ESMA also carries out activities relating to consumer protection, for example by analysing consumer trends or by developing training standards for industry.
Organisation of the ESMA
The ESMA has a Board of Supervisors that is responsible for giving guidance on its activities. The Board is composed of:
The ESMA also has a Management Board.
Joint bodies of the European Supervisory Authorities
The joint bodies of the European Supervisory Authorities are:
Any natural or legal person may appeal against a decision of the ESMA, in writing, within two months of the date of notification of the decision. The Board of Appeal has a period of two months as from the appeal being lodged to confirm the decision taken by the ESMA or to remit the case to a competent body.