Joint European Trade Associations’ views on the ‘Review of the European System of Financial Supervision’

The Federation of European Securities Exchanges (FESE) is among the signatories of a joint letter submitted by leading European trade associations representing the asset management, banking, insurance, pension fund, private equity, and market infrastructure sectors. This letter outlines the collective views of the financial industry on the ongoing Review of the European System of Financial Supervision (ESFS), particularly in the context of the current trilogue negotiations.

As a group, we reaffirm our support for the creation of a harmonised and effective supervisory framework in the European Union, one that ensures consistent and proportionate supervision while respecting the distinct roles of national competent authorities (NCAs). We advocate for a supervisory model that combines enhanced coordination at the European level with local expertise and accountability, striking the right balance between central oversight and national autonomy.

We call for more transparent governance structures within the European Supervisory Authorities (ESAs), enhanced consultation processes, and practical tools such as time-limited no-action letters to help manage complex regulatory implementation challenges. Furthermore, sector-specific expertise in shaping the EU’s Anti-Money Laundering (AML) framework are of particularly importance in relation to decisions impacting financial market participants.

This joint initiative demonstrates the industry’s shared commitment to constructive dialogue, regulatory clarity, and balanced reform, ensuring that Europe’s supervisory architecture continues to support market stability, investor protection, and the global competitiveness of the EU financial system.