France’s
financial markets regulator is pushing for substantial changes to European
capital market supervision, arguing that the current fragmented
system undermines investor protection and limits the competitiveness of EU
financial markets.
The Autorité
des Marchés Financiers (AMF) published
its response to the European Commission’s consultation on the Savings and
Investments Union, advocating for an enhanced role for the European
Securities and Markets Authority (ESMA) in overseeing cross-border financial
activities.
The French
regulator highlighted significant gaps in the current supervisory
framework, where mechanisms remain largely national despite progress
toward market integration. This creates what the AMF describes as
differences in regulatory application, supervisory weaknesses, and additional
costs for market participants.
“The
fragmentation of financial market supervision in Europe is a
major obstacle to deepening the integration of European capital
markets,” the AMF stated
in its consultation response.
Related: Retail
Investing Rises in France but Female Participation Falls to 25%, AMF Finds
ESMA Would Gain Direct
Oversight Powers
Under the
AMF’s proposal, ESMA
ESMA
European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t
European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t
Read this Term would assume direct supervision of large, cross-border
entities including pan-European market infrastructures, global
crypto-asset service providers, and major asset management groups.
The French
regulator recently collaborated with Austrian and Italian authorities to call
for urgent ESMA supervision of major crypto-asset service providers,
following recommendations from an ESMA report published in spring 2024.
Smaller entities
operating primarily in national markets would continue under national
authority jurisdiction through a delegation arrangement organized by ESMA
using an indirect supervision model.
Currently,
each country operates rather independently and fights financial market problems
on its own. For example, the
AMF alone closed 181 fraudulent investment sites in 2024, and local fraud
victims lost an average of 30 thousand euros each.
Join IG, CMC,
and Robinhood in London’s leading trading industry event!
Governance Restructure
Proposed for ESMA
The AMF
outlined specific governance changes for ESMA to accommodate expanded
supervisory responsibilities. The proposal includes creating a board of
supervisors comprising the 27 chairs of national competent authorities,
responsible for regulatory consistency.
A smaller
executive committee made up of qualified independent individuals would handle
operational supervisory decisions under this structure.
Marie-Anne Barbat-Layani
“It’s
time to resolutely embark on this essential change in order to develop the
European capital markets,” said AMF Chair Marie-Anne Barbat-Layani.
“Only unified, consistent and robust supervision will enable the European
Union to consolidate financial stability, effectively simplify the
regulatory framework while ensuring better protection for investors, and
build a single market for financial services that lives up to its
ambitions”.
Market Transformation
Drives Reform Push
The AMF
emphasized that profound market transformation and the
growing importance of private finance and crypto-assets make more
integrated capital market supervision essential. The regulator argued that
current implementation divergences need to end, drawing parallels to the
banking sector’s single supervisory mechanism.
In
connection with the above, the
AMF together with regulators from Italy and Austria also proposed changes to
the latest MiCA cryptocurrency regulations regarding EU crypto oversight,
so that platforms from outside the union would be better controlled
The
proposal comes as the European Commission pursues its Savings
and Investments Union strategy, which aims to create better financial
opportunities for EU citizens while enhancing the financial system’s
capability to connect savings with productive investments.
The
Commission estimates that Europe needs an additional €750-800 billion per
year by 2030 to address challenges including climate change,
technological shifts, and geopolitical dynamics.
France’s
financial markets regulator is pushing for substantial changes to European
capital market supervision, arguing that the current fragmented
system undermines investor protection and limits the competitiveness of EU
financial markets.
The Autorité
des Marchés Financiers (AMF) published
its response to the European Commission’s consultation on the Savings and
Investments Union, advocating for an enhanced role for the European
Securities and Markets Authority (ESMA) in overseeing cross-border financial
activities.
The French
regulator highlighted significant gaps in the current supervisory
framework, where mechanisms remain largely national despite progress
toward market integration. This creates what the AMF describes as
differences in regulatory application, supervisory weaknesses, and additional
costs for market participants.
“The
fragmentation of financial market supervision in Europe is a
major obstacle to deepening the integration of European capital
markets,” the AMF stated
in its consultation response.
Related: Retail
Investing Rises in France but Female Participation Falls to 25%, AMF Finds
ESMA Would Gain Direct
Oversight Powers
Under the
AMF’s proposal, ESMA
ESMA
European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t
European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t
Read this Term would assume direct supervision of large, cross-border
entities including pan-European market infrastructures, global
crypto-asset service providers, and major asset management groups.
The French
regulator recently collaborated with Austrian and Italian authorities to call
for urgent ESMA supervision of major crypto-asset service providers,
following recommendations from an ESMA report published in spring 2024.
Smaller entities
operating primarily in national markets would continue under national
authority jurisdiction through a delegation arrangement organized by ESMA
using an indirect supervision model.
Currently,
each country operates rather independently and fights financial market problems
on its own. For example, the
AMF alone closed 181 fraudulent investment sites in 2024, and local fraud
victims lost an average of 30 thousand euros each.
Join IG, CMC,
and Robinhood in London’s leading trading industry event!
Governance Restructure
Proposed for ESMA
The AMF
outlined specific governance changes for ESMA to accommodate expanded
supervisory responsibilities. The proposal includes creating a board of
supervisors comprising the 27 chairs of national competent authorities,
responsible for regulatory consistency.
A smaller
executive committee made up of qualified independent individuals would handle
operational supervisory decisions under this structure.
Marie-Anne Barbat-Layani
“It’s
time to resolutely embark on this essential change in order to develop the
European capital markets,” said AMF Chair Marie-Anne Barbat-Layani.
“Only unified, consistent and robust supervision will enable the European
Union to consolidate financial stability, effectively simplify the
regulatory framework while ensuring better protection for investors, and
build a single market for financial services that lives up to its
ambitions”.
Market Transformation
Drives Reform Push
The AMF
emphasized that profound market transformation and the
growing importance of private finance and crypto-assets make more
integrated capital market supervision essential. The regulator argued that
current implementation divergences need to end, drawing parallels to the
banking sector’s single supervisory mechanism.
In
connection with the above, the
AMF together with regulators from Italy and Austria also proposed changes to
the latest MiCA cryptocurrency regulations regarding EU crypto oversight,
so that platforms from outside the union would be better controlled
The
proposal comes as the European Commission pursues its Savings
and Investments Union strategy, which aims to create better financial
opportunities for EU citizens while enhancing the financial system’s
capability to connect savings with productive investments.
The
Commission estimates that Europe needs an additional €750-800 billion per
year by 2030 to address challenges including climate change,
technological shifts, and geopolitical dynamics.
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