Europaudvalget 2016-17
EUU Alm.del Bilag 674
Offentligt
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MINISTER FOR INDUSTRY,
European Commission
DG Internal Market and Services (DG MARKT)
Rue de Spa 2
1049 Brussels
Belgium
BUSINESS AND FINANCIAL
AFFAIRS
MINISTRY OF INDUSTRY,
Dear Commissioner,
Thank
you for the opportunity to respond to the Commission’s public
consultation on the operations of the European Supervisory Authorities
(ESAs). Since the establishment of the ESAs in the aftermath of the fi-
nancial crisis, the ESAs have played a significant role in making the Eu-
ropean financial system more resilient.
In general, we fully support the ESAs and believe they have been very
effective in developing the Single Rulebook and working towards more
consistency in regulatory and supervisory matters across the European
Union. Therefore, we do not see a need for a major reform of the ESAs.
First, we believe that the ESAs already have the sufficient tools and re-
sources to ensure financial integration and market integrity.
Secondly, we believe that the current structure of the ESAs allows for the
needed understanding of the specificities of every sector and business
model. In our view, the set-up with three individual ESAs with their own
expertise, competences and tasks works well. Therefore, no fundamental
adjustment of the structure of the ESAs, or the division of tasks between
them, seems warranted.
Also, after having spent a great deal of resources on legislative matters
caused by the major regulatory initiatives taken as a follow-up to the fi-
nancial crisis in the first years of existence, the ESAs are now turning
their attention towards supervisory convergence. This very important pro-
ces should not be slowed down by
changes to the structures of the ESA’s
which are not urgently needed. This includes any further steps towards
increased centralization or direct supervision by the ESAs which we do
not support.
Thirdly, as for the funding of the ESAs, we believe that the current fund-
ing model is generally well-functioning. If alternative solutions reducing
EU and national budgetary contributions are considered we would stress
that it should be taken into account that the financial institutions in many
BUSINESS AND FINANCIAL
AFFAIRS
Slotsholmsgade 10-12
1015 Copenhagen K
Denmark
Tlf.
+45 33 92 33 50
Fax.
+45 33 12 37 78
CVR-nr. 10092485
EAN nr. 5798000026001
[email protected]
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Member States already provide funding to their national competent au-
thorities. A new financing model should thus not be unreasonably burden-
some. It should also be a transparent and simple set-up subject to strict
control of the ESA expenses and based on the EU framework for budget-
ary principles.
Finally, it is vital for Denmark to ensure equal treatment of Member
States whether they participate in the Banking Union or not. Therefore,
the balance between participating and non-participating Member States in
the ESAs should continue to be respected as is case with the voting rules
in EBA.
Taking into account the positive results and developments of the ESA
framework, we believe that the future work of the ESAs should be guided
by the following principles:
The ESAs should provide technical guidance.
The division of tasks
between the legislators in the EU and the ESAs should be respected.
Legislators make policy decisions in the form of level 1-legislation,
while the ESAs conduct work on technical matters in level 2 and 3 in
respect of the political balances achieved during negotiations between
the co-legislators. In recent years we have seen a practice of reverting
unsolved political issues in the hands of the ESAs often due to a de-
sire for rapid finalisation of negotiations. In our view, this practice is
highly unfortunate. In continuation hereof, there is a need for appro-
priate timetables to complete level 1-legislation. It is important that
the ESAs are allowed enough time to prepare technical standards and
guidelines of a high quality and at the same time allow authorities and
financial institutions sufficient time for implementation.
The ESAs should consist of representatives of national competent
authorities.
National supervisors should continue to be an integral
part of the ESA setup. National supervisors contribute with specific
knowledge of national markets. The important task of the ESAs in en-
suring further supervisory convergence can only be achieved through
strong national representation.
The ESAs should focus on outcomes of supervisory practices, not
procedures.
Diversity of business models, markets and supervisory
structures across the EU result in a high degree of variations in na-
tional monitoring practices and implementation of EU legislation.
Therefore, useful comparative analysis and measurement of the de-
gree of supervisory convergence should not be based on a rigid pro-
cedural reading of national rules and practices but focus on whether
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the rules and practices are successful in delivering the desired out-
come.
The ESAs should be vigilant in reducing the administrative bur-
den.
The Single Rulebook has expanded significantly over the years.
A key task for the future work of the ESAs should be to further re-
duce the administrative burden where possible, especially concerning
reporting requirements, while ensuring a high level of investor protec-
tion.
The ESAs should be open and transparent.
Openness, transparency
and stakeholder consultation will ensure the necessary legitimacy to
the work of the ESAs and strengthen the technical work in level 2 and
3. This should be further strengthened.
My services and I are at your disposal for any questions or comments that
you might have. I look forward to a fruitful dialogue on these issues.
Yours sincerely,
Brian Mikkelsen