Ana Martínez-Pina analyses the European proposal on financial supervision | FundsPeople

The European Commission’s initiative to strengthen ESMA’s role reopens the debate on the balance between European and national supervision.

The European Commission has presented a new proposal to advance the integration of financial markets within the Capital Markets Union, reigniting the debate over the advisability of expanding ESMA’s powers and centralising part of the supervision. While there is consensus that Europe needs greater coherence and supervisory convergence, the industry warns that full centralisation could prove ineffective.

For Ana Martínez-Pina, Partner in Financial Regulation and Insurance at Gómez-Acebo & Pombo, ESMA already plays a key role in supervising cross-border entities: “ESMA already performs a significant function within the European framework, with regulatory and direct supervisory powers over entities whose activity is cross-border by nature, such as credit rating agencies or central counterparties.”

However, Martínez-Pina believes that extending direct supervision to all European players would not be appropriate. As she explains, “It might make sense for clearly pan-European actors, such as certain crypto-asset service providers, but not for general centralisation.” She also emphasises the importance of national authorities: “National Competent Authorities (NCAs) provide technical knowledge and a close understanding of the local market, product and investor profiles, as well as the domestic legal and tax environment. This domestic channel is valuable for detecting risks.”

From this perspective, the industry argues that before expanding ESMA’s powers, existing tools such as guidelines, Q&As, and convergence groups should be strengthened, as they help gradually reduce divergences. Experts agree that European direct supervision should focus on genuinely cross-border actors, while national authorities remain essential to ensure investor protection and local market understanding.

The general consensus in the sector is that supervisory convergence should be built through cooperation, data sharing, and the elimination of duplications, rather than through total centralisation.

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