EU Authorities

The financial crisis showed that it was necessary to re-organise the supervisory framework in order to anticipate efficiently any possible financial turbulence. In this context, the European System of Financial Supervision (ESFS) was created on 1 January 2011 in order to enhance the control of the financial activities in the European Union. It brings together the national supervisory authorities together in a solidly linked community network of which the CSSF is part.

 

The CSSF participates in each of the four entities which compose the ESFS:

  • the European Systemic Risk Board (ESRB);
  • the European Supervisory Authorities (ESA) (European Banking Authority (EBA), European Securities and Markets Authority (ESMA), European Insurance and Occupational Pensions Authority (EIOPA));
  • the Joint Committee.

The missions of the ESFS are, among others:

  • to remedy shortcomings in the financial supervision which were highlighted by the financial crisis;
  • to draw up a common regulation in relation to supervision;
  • to ensure that the regulation is applied by the national authorities;
  • to ensure the sound functioning and the integrity of the financial markets as well as the stability of the EU financial system;
  • to follow up and assess the development of the markets and to detect the trends, the possible risks and the vulnerabilities at the microprudential level.