The Joint Committee of the European Supervisory Authorities (ESAs) calls for more clarity on activities carried out through digital means, in the new report.
In a new report on the cross-border supervision of retail financial services, the ESAs has identified the main issues national competent authorities (NCAs) face with supervising financial institutions that provide cross-border retail financial services within the EU.
Further to this, it offers recommendations to both NCAs and EU institutions on how to address these.
One key item addressed within the report is a call for more clarity on when activities carried out digitally fall under passporting rules. It also stated it believes consideration should be given for the identified high-level principles on cooperation as the basis for any new legislation or amendments.
In the report, the ESAs recognised a deepening of the EU single market in financial services and the digitalisation of financial services has intensified the demands placed on NCAs and their supervision of retail banking, investment and insurance across EU borders.
An overview of main rules that apply in the EU in relation to consumer protection, conduct business and cooperation between NCAs. It also assesses the extent to which the rules address the supervisory issues of NCAs.
Finally, the report recommends the European Commission, Council and Parliament to amend existing legislation or create new ones to facilitate the deepening of the single market.
Other recommendations include ones to NCAs and enhancing cooperation amongst them.
The ESA is made up of the European Banking Authority, European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority.
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