Raul Malmstein becomes member of management board of European Securities and Markets Authority
Chairman of the Management Board of the Financial Supervision Authority Raul Malmstein was elected as one of the members of the management board of the European Securities and Markets Authority (ESMA) at its opening session held on 11 January. Securities Exchange Commission Fernando Restoy.
The other members of the six-member management board of the ESMA are Vice-President of the German Federal Financial Supervisory Authority BaFin Karl-Burkhard Caspari, Director General of the Luxembourg Financial Services Surveillance Commission Jean Guill, Director of Markets of the Financial Supervision Authority of the United Kingdom Alexander Justham, CEO of the Austrian Financial Market Authority Kurt Pribil and Vice-Chairman of the Spanish Securities Exchange Commission Fernando Restoy.
The main decision-making body at ESMA, the supervisory board, is composed of the heads of the 27 national authorities responsible for supervising securities markets. The management board of the supervision authority is composed of a chairman and the six members appointed by the supervisory board. The chairman is an independent specialist who works full-time and is responsible for preparing the work of the supervisory board, and chairs the meetings of the supervisory board and the management board. The Parliament may submit objections against the person in this position if necessary. Until the appointment of the chairman, the duties of the chairman of the ESMA are being performed by the vice-chairman, Chairman of the Portuguese Securities Regulator (CMVM) Carlos Tavares.
As of 1 January 2011 banks, insurance companies and securities markets in the European Union are supervised by the following three financial supervision authorities: the European Banking Authority (EBA) in London; the European Insurance and Occupational Pensions Authority (EIOPA) in Frankfurt; and the European Securities and Markets Authority in Paris. The goal of the ESMA is to guarantee the stability of the European Union’s financial system, keeping the securities markets transparent and ensuring that they function efficiently and according to the rules. Other tasks of the new authority include assisting in the development of common supervision standards and practices in European Union Member States, guaranteeing the uniform and successful implementation of legislation, resolution of disagreements between competent authorities and strengthening investor protection.
The new supervision authorities of the European Union coordinate the activities of the financial supervision authorities of Member States and develop proposals on the enactment of legislation for the European Commission. Such legislation may be directly applicable and primary to the laws of Member States. Also, the common financial supervision authorities may establish guidelines and recommendations to the supervision authorities of Member States. Authorities must react immediately if a Member State is not implementing the laws of the European Union correctly. Under special circumstances, the authorities may adopt legislative acts that are compulsory for a bank, insurance company or other subject of supervision in a Member State for the purpose of eliminating breaches of European Union law. The task of the common authorities in the event of a crisis that covers the entire European Union or part of the union is to coordinate resolution of the problem by supervisors in Members States. The activities of the authorities are financed by the financial supervision authorities of Member States and the European Commission.
The EBA, EIOPA and ESMA take over the duties of the Committee of European Banking Supervisors (CEBS), the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and the Committee of European Securities Regulators (CESR).