C: European Supervisory Authorities (ESAs) - created from Mind Map

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European Systemic Risk Board (ESRB)

European Securities & Markets Agency (ESMA)

European Banking Agency (EBA)

European Insurance & Occupational Pensions Authority (EIOPA)

- ensure financial stability & strengthen & enhance EU supervisory framework

- improve co-ordination between national supervisory authorities (FCA)

ESAs' Role

create a single EU rule book

investigate failures to apply, or breaches of, EU law

temp ban certain financial activities

provide EU-wide co-ordination

mediate where national supervisory authorities disagree

role in EU supervisory colleges

conduct regular peer reviews of national supervisory authorities

analyse market developments, coordinate EU-wide stress tests

consider consumer protection issues

ESMA direct supervisory responsibility for credit rating agencies

Markets in Financial Instruments Directive (MiFID)

Replaces Investment Services Directive.

Play a major part in Financial Services Action Plan, which is designed to help integrate Europe's financial markets

widens range of core investment services & activities firms can passport

greater degree of harmonisation

facilitate cross-border business

subject firms to directive-based capital requirements

Insurance Mediation Directive (IMD)

Applies to non-investment insurances.

Sets minimum standards for regulation of sale & admin of insurance

introducing (proposing)

concluding

assisting in admin (particularly in event of a claim)

Imposes Professional Indemnity Insurance requirements on intermediaries who give advice - min limits e1,120,200 for single claim & e1,680,300 in aggregate.

Capital Requirement Directive (CRD) (Basel II)

Basel I helped strengthen soundness & stability of international banking system as a result of higher capital ratios it req'd,

Revision of extg framework which aims to make it more risk sensitive & representative of modern banks risk management principles.

Pillar 1 - minimum capital req's firms req'd to meet for credit, market, and operational risk

Pillar 2 - whether a firm should hold additional capital against other risks

Pillar 3 - require firms to publish certain details of risks and capital & risk management

Third Money Laundering Directive (3MLD)

Provide a common EU basis for implementing revised Financial Action Task Force (FATF) recommendations on money laundering.

Money Laundering Regulations 2007 (MLR) implements FATF's directive in the UK.

Joint Money Laundering Steering Group (JMSLG) 2007 replaced the 2006 version of the guidance to reflect changes to UK's legal framework.

European Supervisory Authorities (ESAs)

Annotations

Notes