LONDON, June 24 The European Union's markets,
banking and insurance watchdogs could be funded from a direct
levy on the sector, the bloc's executive body said in a document
seen by Reuters.
The European Commission has been reviewing the three
watchdogs it launched in 2011 to make supervision of banks,
markets and insurers more consistent across its 28 member
Currently the European Securities and Markets Authority, the
European Banking Authority and the European Insurance and
Occupational Pensions Authority receive 60 percent of their
funding from national supervisors and 40 percent from the
central EU budget.
"Given EU and national budgetary constraints, the Commission
considers that a revision of the existing funding model should
therefore be envisaged, ideally abolishing EU and national
contributions," a draft European Commission paper seen by
"To this end, the Commission will launch preparatory work to
determine under which conditions and additional steps the ESAs
could be fully self-financed by the financial services sector."
The review also looked at how the powers of the three EU
agencies could be extended.
It said potential areas for expanding their roles include
enforcing accounting rules, supervising the "shadow banking"
sector, and direct supervision of highly integrated market
infrastructure like clearing houses.
(Reporting by Huw Jones, editing by Chris Vellacott)