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EU authorities are to get tough new powers to settle disputes among national financial supervisors and to ban risky financial products and activities, in a revamp of EU financial supervision plans agreed on Thursday. If national supervisors fail to act, then the authorities may also impose decisions directly on financial institutions, such as banks, so as to remedy breaches of EU law. The deal struck late on Thursday by the European Parliament and Council negotiators means that the new EU supervisory authorities (ESAs) and the European Systemic Risk Board (ESRB) should be up and running by January 2011.
ESA firefighting powers
The agreement gives the ESAs a strong role within the current setup of colleges of national supervisors. This will enable them to guide...
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