Alternative Investment Management Association Representing the global hedge fund industry
Three new European Supervisory Authorities (ESAs) were created in January 2011. These Authorities replace the committees of European regulators and supervisors - CESR, CEBS and CEIOPS.
The ESAs have been mandated to contribute to financial stability and improve the functioning of the internal market by creating an integrated supervisory framework. The responsibility for day-to-day supervision of financial institutions remains largely with the national authorities of EU Member States. ESAs will act as umbrella organisations that, in addition to their basic coordination and advisory roles, may be given additional specific tasks in EU legislation. ESAs will, inter alia, provide advice to the European Commission, develop draft binding technical standards, issue guidance and recommendations to national supervisors. In exceptional circumstances, ESAs may also take binding decisions in relation to individual financial institutions.
The ESAs are:
ESMA replaces the Committee of European Securities Regulators (CESR) and is an independent Authority charged with ensuring the integrity, transparency and efficiency of the Securities markets and the consistent treatment of investors through effective regulation and supervision across the EU. ESMA also contributes to the single European rule book and prevention of regulatory arbitrage by facilitating supervisory co-operation between national regulators across numerous financial sectors including asset management.
ESMA was established and is governed by Regulation EU 1095/2010.