European regulators back EU capital markets overhaul
The Dutch and French financial watchdogs backed the European Commission’s plan to centralise supervision of capital markets, citing five levers needed to make the system work.
Source: French Financial Markets Authority · August 7, 2026 at 1:46 AM · AI-assisted report
Single-sourceKUALA LUMPUR, 7 AUGUST 2026 —
European regulators back EU capital markets overhaul
Market Impact
KUALA LUMPUR — Dutch and French financial watchdogs have endorsed the European Commission’s plan to centralise supervision of capital markets, highlighting five key levers to ensure an effective and robust system.
The Netherlands Authority for the Financial Markets (AFM) and France’s Autorité des Marchés Financiers (AMF) supported the proposals under the European Union’s Market Integration and Supervision Package (MISP). The initiative aims to strengthen convergence in supervision and market integration across the bloc.
The regulators emphasised that the debate has shifted from whether centralisation is necessary to how it should be implemented efficiently and cost-effectively. A centralised framework would enhance consistency in supervision, reduce redundant compliance burdens for cross-border firms, and deploy supervisory resources where they are most impactful. Key priorities include risk-based, adaptive supervision, transparent funding, independent governance, centralised data management, and effective enforcement of regulations.
The AMF oversees financial market integrity in France, ensuring investor protection, transparency, and compliance with EU rules. The AFM, established in 2002, regulates conduct across savings, investments, insurance, and capital markets in the Netherlands. Both authorities stressed the need for cooperation between the European Securities and Markets Authority (ESMA) and national regulators to maintain market stability and innovation.
The overhaul aligns with broader EU efforts to deepen capital market integration, as highlighted in recent reports by Draghi and Letta.