Supervising Financial Services in an Integrated European Single Market

As Europe’s financial markets become more integrated, so the question of how to supervise these markets becomes more complex. Financial institutions quite reasonably demand more efficient supervisory arrangements to lower costs and to increase efficiency and competitive advantage, while investors and financial supervisors want supervisory arrangements that tackle cross-border risks more effectively.

There is no single or simple way to achieve supervisory convergence: the issues are complex and the solutions are multiple and multi-faceted. This paper sketches out five related challenges that need to be addressed to make progress on achieving convergence of supervisory practice, and
offers some proposals for how this can be achieved. Such proposals do not require new EU legislation but rather focus on practical solutions to this complex issue.

See discussion paper, in pdf format.