Recital 1

(1)Following the financial crisis and the recommendations of a group of high-level experts led by Jacques de Larosière, the Union has made important progress in creating not only stronger, but also more harmonised rules for the financial markets in the form of the Single Rulebook. The Union has also set up the European system of financial supervision (ESFS), built on a two-pillar system which combines micro-prudential supervision, coordinated by the European Supervisory Authorities (ESAs), and macro-prudential supervision through the establishment of the European Systemic Risk Board (ESRB). The three ESAs, namely the European Supervisory Authority (European Banking Authority) (EBA) established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council ⁴ , the European Supervisory Authority (European Insurance and Occupational Pensions Authority) (EIOPA) established by Regulation (EU) No 1094/2010 of the European Parliament and of the Council ⁵ , and the European Supervisory Authority (European Securities and Markets Authority) (ESMA) established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council ⁶ (collectively the ‘founding regulations’), became operational in January 2011. The overall objective of the ESAs is to sustainably reinforce the stability and effectiveness of the financial system throughout the Union and to enhance consumer and investor protection.