The Circulation of Information among NCAs and ESAs: The Case of Prospectuses

Abstract

One of the key conditions for effective supervision and (public) enforcement in a Capital Markets Union is coordination among competent authorities, as it can facilitate supervisory convergence and the effective detection and prosecution of violations. Coordination should occur both horizontally, among national competent authorities (NCAs), and a vertically, between NCAs and the European Supervisory Authorities (ESAs, particularly ESMA). Coordination relies on the exchange of information on matters like supervisory approaches (including the interpretation of relevant provisions) and data that may contribute to revealing breaches of law in cross-border settings. Is the current legal framework for such matters suited to the ambitious goal of delivering a Capital Markets Union? Is there room for improvement in the rules concerning the circulation of information among NCAs and ESMA? Models worth considering when addressing these questions include the European Forum for Innovation Facilitators, the Framework for Cross-Border Testing, and the Gateway to National Supervisors. The cooperation platforms at ESMA envisaged in the Retail Investment Strategy also show an increasing attention by policymakers in this regard.