The associations advocate amendments to empower ESAs with limited regulatory forbearance powers to defer legislative requirements in exceptional circumstances. They want ESAs able to direct national authorities not to enforce Union law when compliance is impossible, creates conflicts, or threatens financial stability. They also seek faster procedures for amending primary and secondary legislation. This would protect banks from enforcement when complying with EU rules is impossible or conflicts with other requirements.
Consumer and investor protections would be weakened when supervisors defer enforcement of financial rules.