The European Commission proposed on Wednesday transferring some powers to oversee the financial sector from national capitals in a move to extend the EU’s grip on the industry as the bloc prepares for the departure of London, its main financial hub.
In a bid to strengthen the so-called Capital Market Union, a flagship project to make the EU financial sector more integrated, the Commission proposed to give direct supervision to EU regulators on critical financial benchmarks, such as Euribor, and on funds with EU labels, such as European venture capital funds.
Insurers will also be more strictly supervised by EU regulators in devising their internal models to calculate risks.
The EU proposal will also extend the EU’s clout on foreign financial firms that are allowed to operate in the EU, a move that could effectively lead to some EU control of Britain’s financial sector.
(Reporting by Francesco Guarascio @fraguarascio; editing by Philip Blenkinsop)
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