Statement by Petra Hielkema, Chairperson of the Joint Committee of the ESAs at the annual hearing of the ECON Committee

Honourable Chairwoman, Distinguished Members of the European Parliament,

Thank you for your kind invitation. It is a pleasure to address you today in my capacity as Chair of the Joint Committee of the European Supervisory Authorities (ESAs) and to present the main activities and key achievements of the Joint Committee since our last hearing.

Simplification and Burden Reduction

Let me start by highlighting the important joint work undertaken on simplification and burden reduction. The Joint Committee recognises the complexity of the current legislative financial framework and supports the objective of making it more efficient. Our work programme for next year already takes this into account and starts by stating that the Joint Committee will explore ways to foster simplification in its remit. This is notable for instance in the Joint Committee’s commitment to promote supervisory convergence in joint files.

However, simplification should not come at the expense of resilience nor lead to deregulation, which could increase market risks and cause fragmentation of the Single Market. Therefore, the JC is supporting simplification while firmly upholding its mission to safeguard financial stability and ensure consumer and investor protection.

The ESAs have launched simplification initiatives within their sector and we will continue to engage closely with stakeholders as necessary.

Digital Operational Resilience (DORA)

Let me turn now to a key area of joint work: digital operational resilience.

Several recent incidents, and particularly the major power outage on the Iberian Peninsula in April 2025, which exposed vulnerabilities in critical cloud-based infrastructure, highlighted the relevance of ICT risks and digital resilience for financial entities. Against this backdrop the Joint Committee continued its action in the implement the Digital Operational Resilience Act (DORA).

On the policy side, the ESAs have successfully delivered all required legal instruments under DORA which lay the foundation for strengthening digital resilience across the EU financial sector. In 2025, the ESAs have started to take new initiatives to facilitate supervisory convergence toward DORA implementation by the competent authorities. In addition, the ESAs issued practical guidance and tools to help financial entities prepare effectively ahead of DORA’s application date on 17 January 2025.

To enable effective critical third-party service providers (CTPP) oversight, the ESAs also completed all necessary preparatory work to establish the new governance structures, including the Joint Oversight Network and Oversight Forum, development of oversight methodologies and relevant arrangements, and deployment of IT systems to support these new oversight tasks. From July to October 2025, based on a structured criticality assessment fed by the data reported by competent authorities (DORA registers of information) in H1 2025, the ESAs have liaised with the relevant ICT TPPs they plan to designate as CTPPs. In November 2025, the ESAs are about to publish the first list of designated CTPPs. That will be an important step in the implementation of the DORA framework, with the progressive establishment of the Joint Examination Teams.

Taken together, these actions represent a comprehensive and coordinated effort to bolster the EU’s resilience against ICT-related risks, while significantly enhancing the financial system’s collective capacity to respond to major digital disruptions and emerging cyber threats.
Strengthening Consumer Protection and Digital Financial Literacy

The ESAs have a mandate to promote transparency, simplicity, and fairness in consumer financial products and services across the Single Market. But this responsibility goes beyond regulation. This is why the Joint Committee coordinates and promotes financial education and literacy initiatives. Because a fair and transparent market can only truly thrive when consumers and investors are informed, empowered, and confident in the decisions they make.
In the context of the EU Digital Finance Strategy, the ESAs have been called upon to provide advice and take action to ensure that the regulatory and supervisory framework is fit for purpose in an increasingly digital financial environment. This includes strengthening consumer protection through enhanced disclosures, improved complaint-handling mechanisms, and critically advancing both digital and financial literacy.
In light of developments in crypto-assets, the ESAs issued a joint consumer warning in early October 2025. The statement reminds consumers that crypto-assets carry significant risks, and that legal protections may be limited, depending on the specific assets and service providers involved. The warning also offers practical guidance to help consumers make better informed decisions such as the importance of verifying whether a crypto service provider is authorised to operate within the EU.
Another important milestone this year was the recent 12th Joint Consumer Protection Day, held on 5 November 2025 in Riga, under the theme: “Building a framework for more efficient, simpler, and safer financial services for consumers.” The event was a remarkable success, drawing participation from over four hundred stakeholders, including representatives from national authorities, industry, academia, and civil society. We would especially like to extend our sincere thanks to you, Honourable Chair, for your keynote address at the event and for your continued support in promoting consumer-centric financial services in the European Union.

Cybersecurity, Artificial Intelligence, and Data Sharing

In a year marked by the rapid acceleration of developments and incidents in cybersecurity and artificial intelligence (AI), I would like to turn to the increasingly key area of data collection, sharing, and security. The evolving digital landscape requires us to strengthen our ability to gather and share data securely and efficiently.
The ESAs are committed to ensuring that regulatory and supervisory frameworks evolve in parallel with technological advancements, so that consumers and retail investors remain informed, empowered, and protected in a digital financial ecosystem.

Other joint key activities

In addition to its core mandate, the Joint Committee has made considerable progress in several critical areas that support the financial stability and integrity of the EU financial system. Risk monitoring remained central, with updated semi-annual reports, published in spring and autumn, highlighting sector vulnerabilities. The latest edition (Autumn 2025) featured a cross-sectoral deep dive on the implications of geopolitical risks and market fragmentation, examining the potential effects of US tariff changes and rising public expenditure, including on defence.
In March 2025, the Joint Committee delivered its second report on the functioning of the securitisation regulatory framework. The report identified areas for simplification, particularly with respect to transparency and due diligence, and proposed a series of targeted measures aimed at unlocking the potential of traditional securitisation, while maintaining a high level of investor protection. Insights from our Report fed into the Commission proposal and shaped the ongoing review the Securitisation Regulation.

The Joint Committee worked to further support of the EU’s Sustainable Finance agenda and the Green Deal. In September 2025, the ESAs published their fourth annual joint report assessing how financial market participants are doing in voluntarily disclosing Principal Adverse Impacts (PAIs) under the Sustainable Finance Disclosure Regulation (SFDR). The Joint Committee observed a steady improvement in quality at both entity and product level.
In collaboration with the ECB and ESRB, the Joint Committee contributed to the final results of the "Fit-for-55" climate scenario analysis. Released in May 2025, the findings highlighted transition risks under accelerated decarbonisation, underscoring the financial sector’s key role in supporting a sustainable economy.

Conclusion

Honourable Members,

Looking back over the past year, it is clear that the Joint Committee continues to adapt and evolve in response to a rapidly changing financial landscape. Amidst ongoing geopolitical tensions and broader economic uncertainty, the Joint Committee has remained a central pillar of coordination ensuring consistency, cooperation, and resilience across the Union’s financial supervisory architecture.

In 2026, the Joint Committee will focus on several strategic priorities to enhance the resilience and effectiveness of the EU financial system.
To that end, the Joint Committee will continue its work in operationalising the oversight of critical ICT services. The Joint Committee will also foster supervisory convergence in these areas in cooperation with all relevant authorities.

The Joint Committee will also support the revision and implementation of key cross sectoral legislative acts, including the Sustainable Finance Disclosure Regulation (SFDR), the Securitisation Regulation, and the PRIIPs Key Information Document (KID).

Consumer and investors protection will remain a central area of work. In particular, the Joint Committee will develop initiatives aimed at improving financial education, in line with this September’s European Commission Financial Literacy Strategy.

To conclude, let me emphasise that the ESAs highly value the close and trust-based cooperation with the ECON Committee members. We are deeply grateful for the continued support of the European Parliament, and especially to the Members of this Committee. We look forward to continuing this fruitful relationship in the year ahead.

Together with Verena and José Manuel, I would be pleased to take any questions you may have.

Thank you very much for your attention.