Mr. Oliver Gilvarry:

The Commission's response is that this is required to give a more pan-European view and ensure supervisory convergence. There are significant powers for the ESAs today but they have not been used in a major way. Part of the reason is because the ESAs are also responsible for doing what is called "level two". These are the regulatory technical standards that put the flesh on the bones of a directive or regulation. There have been a significant number of these in the past five years, including the capital requirements directive, the capital requirements regulation, and the MiFID II has been completed recently and transposed. We have seen the market abuse frameworks. There has been a large raft of legislative proposals and these ESAs must focus on them to create the rules around them. They have not been as focused on supervisory convergence so our argument is, rather than creating these new structures and diluting the power of national competent authorities, they should focus more on supervisory convergence. If there are issues following that, a fundamental reform can be carried out. As Mr. Cross outlined, the framework came into place in 2011. Let us give it a bit of time to see if we need fundamental reform.