World Savings and Retail Banking Institute publishes joint industry call for an ESMA competitiveness mandate and no action relief in EU reforms

The World Savings and Retail Banking Institute published a joint statement from 12 trade associations urging European Union policymakers to use the Market Integration and Supervision Package to make durable changes to the legislative and supervisory framework for financial services. The statement argues that the package should be used to improve proportionality, predictability and legal certainty, with a stronger focus on how rulemaking and supervision affect the international competitiveness of European Union markets. The trade associations call for a secondary competitiveness objective to be added to the European Securities and Markets Authority mandate, while preserving its core objectives. They want the European Securities and Markets Authority to reflect competitiveness in impact assessments and cost-benefit analyses and to take decisions on authorisations, model validations and new products within clear timeframes to reduce time to market. The statement also urges better sequencing of European Union legislation so new obligations apply only after supporting technical standards are finalised and implementation periods are available, alongside credible no-action relief powers for European Union authorities to handle timing mismatches and unforeseen market developments. On supervision, it warns against duplicative oversight, unclear allocation of responsibilities and hybrid supervisory arrangements that could undermine the Savings and Investments Union objectives of competitiveness and convergence.