Europe's national financial regulators will see their powers curtailed as the European Union's new supervisory bodies get up and running, Hector Sants, head of the U.K.'s Financial Services Authority (FSA) has warned.
Commenting in the FSA's latest annual report, Sants said it was “important to recognize the implications of the change”, which will see the issues of most importance decided in Brussels.
The European Union created three new supervisory bodies to oversee Europe's financial services industry and capital markets as part of its response to the crisis in the sector.
These will soon become “the key policy-making forums” in Europe, said Sants, with national bodies like the FSA left trying to influence policy that will increasingly be decided set at a European level.
The new bodies are the European Securities and Markets Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Banking Authority (EBA). They opened for business on January 1.