Lawyers welcome reduced role for ESAs

Author: | Published: 10 Sep 2010

EU proposals that limit the role of the new European Supervisory Agencies (ESAs) have been welcomed. But lawmakers have been careful to leave scope for extra powers.

“In comparison to where we were in earlier drafts the position has improved,” said James Smethurst, a corporate partner at Freshfields Bruckhaus Deringer in London.

“The new authorities will have a much less direct supervisory role, which is to be welcomed.”

Under the latest set of rules, which Europe’s financial ministers have approved, the new ESAs for the banking, securities and insurance markets will have no enforcing supervisory powers.