EFSAs

European Financial Supervisory Authorities (EFSAs) are a group of European Union agencies established to oversee and harmonize the regulation of the financial sector across the EU, with the aim of promoting financial stability, market integrity, and investor protection. They operate within the European System of Financial Supervision (ESFS). The three authorities that compose the EFSAs are the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA).

Each authority has a sector-specific mandate: the EBA focuses on banking supervision and regulatory convergence; ESMA covers securities markets, market participants, and investment services; and EIOPA oversees insurance and reinsurance, as well as occupational pensions. Together they work to ensure the consistent application of EU financial law, contribute to a harmonized single rulebook, monitor systemic risks, and support national authorities in supervision and enforcement.

The primary instruments of the EFSAs include the issuance of guidelines, recommendations, and technical standards, as well as the performance of risk assessments and stress testing. They facilitate cooperation and information exchange among national competent authorities, coordinate cross-border supervisory actions, and provide opinions to the European Commission on proposed legislation. While national authorities maintain day-to-day supervision, the EFSAs can issue binding decisions or take action in cross-border matters as provided by EU law and may request information to ensure uniform application of rules.

The EFSAs are funded from the EU budget and operate through a network of national authorities, with governance conducted by a Management Board and the chairs of the three agencies. They publish regular risk assessments and work programs to guide EU-wide supervision.