On 21 March 2017, the European Commission launched a public consultation seeking views on the operation of the European Supervisory Authorities (“ESAs“).  Following stakeholder recommendation, the FMLC takes this opportunity to offer a response to the Consultation in respect of one particular tool used by the ESAs to promote a common supervisory culture: question and answer (“Q&A”) documents.

The overall Q&A process is characterised by a substantial element of practical and procedural uncertainty, which could be detrimental to participants in the markets supervised by the ESAs.  In the report—entitled Issues of Legal Uncertainty Arising in the Context of the Use of Q&A Documents by the European Supervisory Authorities: Response to the European Commission’s Public Consultation on the Operations of the European Supervisory Authorities—the FMLC suggests that the ESAs consider introducing certain enhancements to the current Q&A process so as to ensure a more consistent approach in fulfilling the mandate set out for them.

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