Abstract

Due to the evolution of financial markets, the role of supervisory authorities on risk management and their administrative powers deeply changed, as well as the architecture of financial supervision. Indeed, after the financial crisis, the capacity of supervision to face the challenges of financial innovation, i.e. internationalization and securitization, are highly questioned. The paper deals with the evolution of supervision within the Community and Italian legal frameworks, with a specific focus on the aspects involved by financial innovation (prudential supervision of securitization and coordination of supervision of multi-sector and cross-border entities) and the flaws experienced during the crisis.