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Patterns of Networked Enforcement in the European System of Financial Supervision: What is the New Role for the National Competent Authorities?

Published online by Cambridge University Press:  24 July 2019

Abstract

Enforcement of the European System of Financial Supervision (ESFS) has undergone a three-step process over time, leading it to a current networked configuration of powers and tasks between the EU and the national competent authorities (NCAs). In light of this, this paper has a twofold aim. First, it analyses the actual configuration of enforcement mechanisms in the ESFS, arguing that different patterns emerge across the three branches (banks, securities markets and insurance): as governance becomes more complex in terms of number of actors and functions, verticalisation of enforcement increases. Second, by taking into account the three Italian competent authorities, it assesses the concrete changes occurred both in organisation and in perceived effectiveness, through quantitative data and qualitative surveys. It therefore argues that the more institutionalised and verticalised is the enforcement governance, the less reluctant will NCAs be to transfer shares of their enforcing powers to the EU level and to change their practices and organisational structures concretely, according to harmonisation requirements by the European supervisory authorities and the European Central Bank.

Type
Symposium on Institutional Innovations in the Enforcement of EU Law and Policies
Copyright
© Cambridge University Press 2019 

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25 Art 23(d) of Regulation (EU) no 513/2011 of the European Parliament and of the Council of 11 May 2011 amending Regulation (EC) no 1060/2009 on credit rating agencies.

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27 EBU involves the Euro-area and the States agreeing to join it.

28 Art 127(6) TFEU, establishing the Single Supervisory Mechanism (SSM), one of EBU’s three pillars.

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38 The ECB was endowed with a general sanctioning power by Regulation (EC) no 2532/1998.

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55 IVASS, Relazione anno 2015, supra note 52, p 200 (own translation).

56 IVASS, Relazione sull’attività svolta dall’Istituto nell’anno 2016 (Rome, Istituto per la vigilanza sulle assicurazioni 2017) p 202 (own translation).

57 ibid, p 193.

58 Amendment to Legislative decree no 209/2005 (Codice delle assicurazioni private) adding Art 325-quater.

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72 In light of the new policy, in November 2018 ESMA published its first annual report concerning administrative and criminal sanctions issued by NCAs under the Market Abuse Regulation. See <www.esma.europa.eu/sites/default/files/library/esma70-145-1081_mar_article_33_report_sanctions.pdf>.

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