December 5, 2025
A European Commission proposal would significantly expand the powers of the European Securities and Markets Authority, including the ability to suspend cross-border activities of asset managers in limited circumstances. The reforms are intended to reduce fragmentation in EU capital markets but have raised concerns about supervisory centralisation, legal certainty, and regulatory overreach. Michael Pedroni of Highland Global Advisors notes that the proposals would materially reshape the oversight framework for Europe’s largest asset managers.