BRUSSELS—The European Parliament has concluded negotiations with the European Commission and European Union governments on the structure of a new European Systemic Risk Board and three European supervision authorities.

The systemic risk board will oversee macroeconomic risks that threaten the stability of Europe’s financial system as a whole, while the supervisory authorities will concentrate on the financial strength of insurance and pension companies, banks, and operations dealing in securities and investments.

If the agreement reached Thursday gains final approval by the European Parliament this month, the regulatory framework is expected to be in place by January.

The structure calls for a broad range of skills and experience at the board, the European Parliament said in a statement. The board president regularly will hold confidential briefings with senior members of Parliament responsible for economic matters.

The supervisory authorities will be authorized to make decisions that apply directly to individual financial institutions in cases of “manifest breach or nonapplication of law, and where there is disagreement between national authorities,” according to the European Parliament statement.

Supervisory authorities may temporarily prohibit or restrict financial activities they decide are harmful.

The European Parliament said it “demanded that more power be given to new European supervisory authorities” during negotiations on the structure of the regulatory framework.

“Some national governments disagreed, preferring to preserve the powers of national supervisors,” the European Parliament said in the statement. “After lengthy negotiations, Parliament’s view prevailed.”