EU financial market supervision revisited: the European securities regulator

Abstract:

This paper deals with the regulation and supervision of financial markets within the European Union (EU). Recent developments in financial services at EU level as well as regulatory and institutional developments at national level have recently moved the question of the institutional structure of the EU financial services regulation and supervision beyond the purely academic domain to form the subject of specific political debate. The new Lamfalussy method promises a fast-track decision-making structure, which will be more transparent, flexible and effective. Specific legal, economic and institutional hurdles, however, will further slow down and undermine the creation of the Single Financial Market. The aim of this paper is to contribute to this debate by critically assessing the current regulatory and supervisory regime in EU financial services with a view to drawing policy lessons and recommendations on more effective and efficient institutional alternatives.