The European Commission (the Commission) has published a summary of the contributions to its call for evidence on the EU regulatory framework for financial services.
The purpose of the call for evidence was to consult all interested stakeholders on the benefits, unintended effects, consistency, gaps in and coherence of the EU regulatory framework for financial services. It also aimed to gauge the impact of the regulatory framework on the ability of the EU economy to finance itself and grow.
The feedback summarises the issues raised in the call for evidence and provides a factual overview of the contributions received and examples provided. It is not an exhaustive list of all contributions and does not assess the validity of the respective claims. Therefore, the content of this document cannot be regarded as reflecting the position of the Commission.
The feedback statement is set out as follows:
- section 2 provides an overview of the respondents and responses;
- section 3 sets out the feedback relating to the rules affecting the ability of the economy to finance itself;
- section 4 sets out feedback relating to unnecessary regulatory burdens;
- section 5 sets out feedback relating to the interaction of individual rules, inconsistencies and gaps; and
- section 6 sets out feedback to rules that give rise to possible unintended consequences.
Among the comments made in the feedback statement:
- banks commented on the possible adverse impact of the liquidity coverage ratio (LCR). For example, it was argued that the LCR is having a negative impact on corporates’ cash management;
- many real estate investors, investment funds and insurance associations called for equal treatment between real estate and infrastructure;
- some respondents argued that the Market Abuse Regulation places a high burden on SME growth market issuers which may ultimately result in less activity in these markets and thereby reduce financing for SMEs; and
- industry raised the proposed financial transaction tax as a potential barrier to investment in European companies.