Financial Supervision Authority transposes its first European supervisory authority guidelines
For the first time, the Financial Supervision Authority has transposed into the form of advisory document a set of guidelines developed by the European supervisory authority ESMA. The European Securities and Markets Authority guidelines deal with requirements for electronic trading systems on a regulated market and provision of market access for investment service providers within a multilateral trading system.
Both the ESMA and Financial Supervision Authority guidelines will enter into force on 1 May 2012.
From 2011, four European Union institutions have an additional role in regulating and performing supervision over the European banking, insurance market and securities market. These are the European Systemic Risk Board ESRB, the European Banking Authority EBA, the European Insurance and Occupational Pensions Authority EIOPA and the European Securities and Markets Authority ESMA.
The European supervisory authorities have broad powers to develop regulations; among other things, they develop proposals for the European Commission for the establishing of legal acts. The latter may be directly applicable and take precedence over national law. In addition, the European supervisory authorities issue guidelines and recommendations to the supervisory authorities in the member states. The Financial Supervision Authority takes part actively in developing proposals, guidelines and recommendations on topics important for the Estonian financial market.