The European Commission (Commission) has published a communication on the follow-up to its call for evidence on the EU regulatory framework for financial services. The call for evidence was a key contribution to the Commission’s Better Regulation agenda and the Regulatory Fitness and Performance (REFIT) programme, which ensures that EU legislation delivers results for citizens and business effectively, efficiently and at a minimum cost.
Based on a review and analysis of all the responses to the call for evidence and the discussions during the public hearing held in Brussels in May 2016, the Commission has concluded that overall the financial services framework in the EU is working well. However, targeted follow-up action is required in the following areas:
- reducing unnecessary regulatory constraints on financing the economy;
- enhancing the proportionality of rules without compromising prudential objectives;
- reducing undue regulatory burdens; and
- making the regulatory framework more consistent and forward looking.
Where appropriate and possible, the results of the call for evidence have been integrated into existing EU reviews and legislative initiatives. The feedback submitted by stakeholders has been incorporated, in some instances, into forthcoming legislative proposals and actions, including the review of the Capital Requirements Regulation and Capital Requirements Directive IV, which resulted in the so-called “CRR2 package” that the Commission recently published and the forthcoming REFIT revision of the European Market Infrastructure Regulation.
In terms of next steps, the Commission notes that certain adjustments will be taken forward through:
- fitness checks and legislative reviews as part of REFIT, including on reporting requirements in the financial sector;
- calibrating of the measures at both the legislative and implementation levels;
- ongoing policy work: refining and accelerating measures under CMU Action Plan; and
- Commission input into work at the global level to measure and evaluate the combined effect reforms.
The Commission will monitor progress in the implementation of the respective areas and will publish its findings and possible next steps before the end of 2017.
View Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Call for Evidence – EU regulatory framework for financial services, 23 November 2016