Your consultant

In topic Financial Markets:

Dr. Bert Van Roosebeke

Head of Division

+49 761 38693-230

vanroosebeke(at)cep.eu

Dr. Martina Anzini

Policy Analyst

+ 49 761 38693-240

anzini(at)cep.eu

Philipp Eckhardt

Policy Analyst

+49 761 38693-241

eckhardt(at)cep.eu

Anne-Carine Pierrat

Policy Analyst

+49 761 38693-223

pierrat(at)cep.eu

Financial Markets

As a consequence of the financial and euro crisis, the European Union is carrying out a thorough overhaul of the regulation of financial markets. This applies equally to banks and insurance companies as well as to other stakeholders. The focus is on more intensive regulation and the partial communitisation of the risks. The emphasis is on risk management by financial markets participants, the cooperation and integration of the supervisory authorities as well as investor protection. cep continuously monitors these proposals.

Addressing the Italian malaise (cepInput)

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The future of the eurozone depends crucially on whether the Italian government can reduce its debt ratio. In an input, the cep looks at way to boost Italian economic growth and debt reduction.

What Role is left for National Authorities within the Single Supervisory Mechanism?

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On 30 July 2019, the German Federal Constitutional Court has decided whether the single supervisory mechanism (SSM) of the euro zone complies with the German constitution. The question of whether the ECB's banking supervision is covered by the European Treaties is especially relevant. In an Adhoc, the cep assesses a recent ruling of the European Court of Justice (ECJ) on this issue.

Disclosures on Sustainability

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In March 2019, the EU Regulation on sustainability-related disclosures in the financial services sector was politically agreed. This cepAdhoc gives an overview of its main elements and assesses them.

The EU Green Bond Standard (GBS)

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An expert group of the EU Commission plans to present recommendations on an EU standard for green bonds in mid-June. In a cepInput, the cep gives an overview of the market for green bonds in the EU and analyses the initial proposals of the expert group for the development of the standard.

EU-Guidelines on Non-Financial Disclosure

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In June 2019, the EU-Commission will publish final guidelines regarding the disclosure of climate related, non-financial information by large public interest companies. This cepAdhoc gives an overview of a draft version of the guidelines and analyses their legal value.

Assignments of Claims (Regulation)

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The Commission wants to foster cross-border investment by improving legal certainty in cross-border transactions of claims.

Green Taxonomy

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On 28 March 2019, the EU Parliament voted on the green EU taxonomy, while the Council has not taken a position yet. This cepAdhoc presents and evaluates the Parliament's position.

EMIR-REFIT

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In February 2019, the European Parliament and the Council agreed on amendments to the rules on derivatives clearing. A cepAdhoc explains the changes and assess them.

Green Taxonomy (Regulation)

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With a regulation, the EU Commission wants to create the framework for sustainable investments. In order to attain this, the criteria that economic activities must comply with to qualify as “environmentally sustainable” are now set out.

FinTech Action Plan (Communication)

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The European Commission wants to create a more competitive and innovative European financial sector with initiatives on new financial technologies. Therefore it has submitted a FinTech action plan.

Credit servicers, credit purchasers and the recovery of collateral (Directive)

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The EU Commission wants to achieve a reduction in the high stocks of non-performing loans. A Directive on credit servicers, credit purchasers and the recovery of collateral aims to prevent a future increase.

Derivatives clearing after Brexit

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Following Brexit on 29 March 2019, the United Kingdom will become a "third country". Financial and other companies domiciled in the EU will then no longer be able to easily fulfil their obligation to clear derivatives with "central counterparties" (CCPs) in London. In a cepAdhoc, short and medium-term EU priorities for derivatives clearing are analysed.

Reform of the European Stability Mechanism (ESM)

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On 4 December 2018, the Eurogroup agreed on a reform of the European Stability Mechanism (ESM). In the run-up to forthcoming changes to the ESM Treaty, cep analyses the Eurogroup’s political agreements.

Crowdfunding (Regulation)

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The Commission wants to facilitate the scaling up of crowdfunding services in the European internal market. This will be based on a Regulation submitted by the Commission. It forms part of the Commission’s agenda to establish a Capital Markets Union.

The Sustainability Disclosure Regulation

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The Commission proposes to force financial market participants and financial advisors to disclose to what extent they take environmental, social and governance (ESG) factors into account when making investment decisions or providing financial advice. We analyse the Commission‘s proposal and present the negotiating positions of the Council and the European Parliament.

Sustainable Finance (Communication)

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The Commission is pressing for a more sustainable financial sector and has therefore submitted an Action Plan on the financing of sustainable growth. This provides inter alia for a classification system for sustainability (“EU taxonomy”) that will provide a basis for “sustainable” action by financial institutions, rating agencies, market analysts and investors.

Cross-border distribution of collective investment funds (Directive/Regulation)

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The EU Commission wants to contribute to the promotion of the cross-border sale of investment funds. The corresponding proposals for a regulation and a directive provide, among other things, that so-called undertakings for collective investments in transferable securities (UCITS) and alternative investment funds (AIF) may not be obliged to be "physically present" in the host Member States.

EU Securities and Markets Authority (ESMA) (Regulation)

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The responsibilities and powers of the European Securities and Markets Authority (ESMA) are to be significantly widened. For this purpose, the EU Commission has proposed a Regulation. In addition to ESMA, this will principally affect investment funds, investment firms, trading venues, data reporting services, benchmark administrators and contributors, issuers and of course investors.

Prudential Supervision of Investment Firms (Directive)

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The supervision of investment firms in the EU should be more adapted to their respective business models and risks. With this aim, the EU Commission has developed a proposal for a Directive which, by dividing investment firms into three classes, counteracts the consolidation of the sector brought about by regulation.

Prudential Requirements of Investment Firms (Regulation)

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The supervision of investment firms in the EU will become more adapted to their business models and risks. For this purpose, the EU Commission has proposed inter alia a Regulation on prudential requirements for investment firms.

European Monetary Fund (Regulation)

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The European Stability Mechanism (ESM) will be transformed into the “European Monetary Fund” (EMF) and incorporated into EU law. In addition, the EU Commission wants to establish a financial backstop for the European Single Resolution Board (SRB) by way of the EMF.

EU-Insurance Watchdog (EIOPA) (Regulation)

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The European supervisory authority EIOPA will take on more responsibility for the supervision of insurance companies. In this regard, the establishment of an independent Executive Board may reduce Member States’ ability to interpret EU regulations improperly, to their own advantage. The establishment of an Executive Board will also facilitate the punishment of infringements of EU law committed by national supervisory authorities (NSAs) and allow for more effective resolution of conflicts between NSAs.

EU Finance Minister (Communication)

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With the creation of an EU Finance Minister, the European Commission wants to improve coordination of economic policy in the EU. With this aim, he will combine three offices into one - EU Commissioner for Economic and Monetary Union, Chair of the Eurogroup and Chair of the Board of Governors of the European Monetary Fund.

EU-Banking Authority (EBA) (Regulation)

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The European Commission wants to give the European Banking Authority (EBA) more responsibility for financial supervision. In cep’s view, however, the EBA’s new tasks, to allow for “ecological and social factors” and to promote consumer protection, may lead to a conflict of interest with its actual task - safeguarding financial stability.

Framework for screening of foreign direct investments (Regulation)

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Against the backdrop of increased Chinese foreign direct investments in the EU, the Commission wants to create a legal "framework" for screening foreign direct investments (FDI). The Regulation does provide clarity about the screening procedure to be used by Member States. Vague terms however carry a protectionist risk.

Pan-European Personal Pension Product (Regulation)

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The EU Commission wants to create a framework for a pan-European Personal Pension Product (PEPP). An internal market for personal pensions will promote competition, channel savings towards the capital markets and away from traditional savings deposits in banks and increase the distribution of personal pension products in the EU.

Derivative Rules (EMIR) (Regulation)

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The Commission wants to improve the rules in the EMIR Regulation, particularly those relating to over-the-counter derivatives. In the PolicyBrief on the proposal from the EU Commission for a corresponding Regulation, the easing of the clearing obligation for counterparties that only undertake limited derivative transactions is seen as appropriate because these do not represent a serious threat to the stability of the financial markets.

Consumer Financial Services (Communication)

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The EU Commission wants to strengthen the internal market for consumer financial services. In its analysis of the Commission’s Communication, cep regards as appropriate the Commission’s reluctance to bring in new rules on territorial restrictions because such restrictions are not per se limitations on the internal market.

EU Deposit Guarantee Scheme in the European Parliament

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The European Parliament discusses the EU Commission's proposal to introduce an EU deposit guarantee scheme. The cepAdhoc assesses the European Parliament's draft report.

The European Supervisory Authorities – Room for improvement at Level 2 and Level 3

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This cepStudy examines the regulatory role of the European Supervisory Authorities (ESAs) and the EU Commission. cep makes ten recommendations for improving control and scrutiny of the ESAs' and the Commission’s activities at Level 2 and Level 3. These include calling on the Council to strengthen its monitoring structures. The ESAs should only be able to develop guidelines where Parliament and the Council do not object.

Prospectus Rules (Regulation)

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The Commission wants to reduce red tape with regard to the preparation of prospectuses which have to be published when securities are offered to the public or admitted to trading. This will give companies easier access to the capital markets. In cep's view, however, the proposal will result in distortions of competition and legal uncertainty.

Retail Financial Services (Green Paper)

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The European Commission wants to remove barriers to cross-border retail financial services and has submitted a Green Paper on the subject. The portability plans set out therein, particularly for life insurance and private health insurance, are, however, in cep's view, unrealistic.

European Deposit Guarantee Scheme

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The EU Commission's proposed Regulation on the creation of a European deposit insurance scheme has sparked heated debate. Although the European Deposit Insurance Scheme (EDIS) is initially only intended to apply to the eurozone, in the future it will also apply to Member States who will join the common banking supervision by the ECB. The main component is the creation of a joint Deposit Insurance Fund to provide payouts to depositors and contributions to resolution.

European Deposit Guarantee Scheme (Regulation)

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The EU Commission's proposed Regulation on the creation of a European deposit insurance scheme has sparked heated debate. Although the European Deposit Insurance Scheme (EDIS) is initially only intended to apply to the eurozone, in the future it will also apply to Member States who will join the common banking supervision by the ECB. The main component is the creation of a joint Deposit Insurance Fund to provide payouts to depositors and contributions to resolution.

Reform of Securitisation Markets (Regulation)

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The EU Commission wants to revive the securitisation markets which collapsed during the financial crisis. The stakeholders involved in these markets will be subject inter alia to transparency and due diligence obligations. In addition, the EU Commission wants to create a label for simple, transparent and standardised securitisation (STS securitisation).

Action Plan on Capital Markets Union (Communication)

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The Commission wants to strengthen the internal EU market for capital by 2019. It therefore presents a detailed Action Plan to achieve this aim. It is planning to establish criteria for lending by certain investment funds and to reduce the capital requirements for infrastructure investment. It also wants to revive the European securitisation market and streamline prospectus obligations.

Completing Economic and Monetary Union 1: Economic Union

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The EU wants to strengthen "economic policy coordination, convergence and solidarity" in the eurozone. It therefore proposes the creation of four Unions: an Economic Union, a Financial Union, a Fiscal Union and a Political Union. This cepPolicyBrief deals with the Economic Union. Economic Union involves the creation of independent National Competitiveness Boards as well as stronger focus on employment and social policy.

Completing Economic and Monetary Union 3: Fiscal Union

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The EU wants to strengthen "economic policy coordination, convergence and solidarity" in the eurozone. It therefore proposes the creation of four Unions: an Economic Union, a Financial Union, a Fiscal Union and a Political Union. This cepPolicyBrief deals with the Fiscal Union which involves the establishment of a European Fiscal Board and the creation of a "macroeconomic stabilisation function".

Completing Economic and Monetary Union 2: Financial Union

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The EU wants to strengthen "economic policy coordination, convergence and solidarity" in the eurozone. It therefore proposes the creation of four Unions: an Economic Union, a Financial Union, a Fiscal Union and a Political Union. This cepPolicyBrief deals with the Financial Union which comprises a Capital Markets Union and a Banking Union supplemented by a common deposit guarantee scheme.

Completing Economic and Monetary Union 4: Political Union

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The EU wants to strengthen "economic policy coordination, convergence and solidarity" in the eurozone. It therefore proposes the creation of four Unions: an Economic Union, a Financial Union, a Fiscal Union and a Political Union. This cepPolicyBrief deals with the Political Union which covers strengthening parliamentary control in the European Semester, the unified external representation of the eurozone in the IMF and the establishment of a "Treasury".

A Deposit Guarantee Scheme for the Eurozone

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The European Commission will put forward proposals for a Deposit Guarantee Scheme (DGS) for the Eurozone on 24 November 2015. The cep sets out six prerequisites such Eurozone DGS should meet.

A sovereign default regime for the eurozone

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The European requirements for economic reform and consolidation are being ignored in many capitals. The eurozone countries openly disagree on what role the market should play as a mechanism for ensuring discipline and coordination. To overcome this dilemma, the eurozone should agree on a sovereign default regime for its member states.

Capital Markets Union (Green Paper)

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The EU Commission presents its plans on the establishment of a Capital Markets Union. With this, it wants improve access to financing for, in particular, small and medium-sized enterprises (SMEs), increase and diversify the sources of funding for businesses and make capital markets more effective and efficient. The cep has taken a closer look at the Commission’s plans for a Capital Markets Union.

New Bank Liquidity Rules in the EU: A Blessing or a Curse?

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From October 2015, banks must meet additional liquidity requirements in the EU. The cep introduces the new rules and highlights their impact.

European Fund for Strategic Investments (EFSI) (Regulation)

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The Commission assumes an investment gap in the EU, as investments have fallen in the EU by 15% since 2007. Consequently, it wants to mobilise investments in the EU amounting to € 315 billion by creating a European Fund for Strategic Investments (EFSI).

 

 

Review of the ESAs

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In January 2011, the European Union established three European Supervisory Authorities (ESAs) for the financial sector: The European Banking Authority (EBA, in London), the European Insurance and Occupational Pensions Authority (EIOPA, in Frankfurt) and the European Securities and Markets Authority (ESMA, in Paris). Currently, the Commission is reviewing the regulations governing the three ESAs and will bring forward its proposals for amendments in early 2015.

Focussing on the Long-term Interests of Shareholders (Directive)

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The Commission wants decisions by stock companies to be based to a greater extent on long-term performance and less on short-term share price fluctuations. It therefore proposes measures aiming to ensure that decisions by stock companies take more account of shareholders' interests.

Occupational pensions (IORP II) (Directive)

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The EU Commission makes proposals for strengthening the internal market for occupational pensions. It wants to facilitate cross-border IORPs business, ensure effective supervision of IORPs and enhance governance. In addition it extends the obligations for providing information to members and beneficiaries and amends the investment rules.

Money Market Funds (Regulation)

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The Commission wants to increase the stability and transparency of money market funds.

Support for Crowdfunding (Communication)

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The EU Commission wants to promote financing by way of crowdfunding.

Long-term Financing of the European Economy (Communication)

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The EU Commission wants to increase the supply of possibilities for long-term financing, particularly for small and medium-sized enterprises (SMEs) and infrastructure projects.

The ESM's direct banking recapitalisation: Looking forward in backstop-questions

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cep analyses the plans enabling the ESM to directly recapitalise ailing banks in the Eurozone. Also, the further development of the ESM serving as backstop for the banking union in being analysed.

Banking structural reform (Regulation)

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The Regulation prohibits "proprietary trading" by larger banks and permits the banking regulators to prohibit "trading activities" so that the trading concerned is only carried out by companies which are separate from the bank.

Securities Financing Transactions (Regulation)

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The Commission wants to introduce a EU-wide reporting obligation for securities financing transactions, tighten rules on the rehypothecation of securities and extend the information requirements for investment funds.

Regulating the card-based transaction market (Regulation)

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The Commission wants to restrict the level of interchange fees for card payments and eliminate anti-competitive business rules and practices.

Payment services: PSD II (Directive)

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With the proposal for a Directive on a 2nd Payment Services Directive, the Commission wants to promote the European payments market and encourage transparency, security and innovation in relation to payments.

State aid for banks (Communication)

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The Communication sets out the up-dated EU crisis rules for state aid to banks during the crisis from 1st August 2013. It replaces the 2008 Banking Communication and supplements the remaining crisis rules. Together, they define the common EU conditions under which Member States can support banks with funding guarantees, recapitalisations or asset relief and the requirements for a restructuring plan.

Long-term Investment Funds (ELTIF) (Regulation)

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With the creation of a new type of European investment fund (ELTIF), the Commission wants to channel "patient" capital from both professional and retail investors into infrastructure projects, property and non-listed companies.

Disaster Insurance (Green Paper)

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The Commission wants to increase the distribution of building insurance for elemental damage and ensure that industrial companies can afford to remedy environmental damage.

Bank Resolution in the SSM States (SRM) (Regulation)

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The Commission proposes that, in future, it will decide, together with a new Resolution Board, on the resolution of banks in SSM States. In addition, a Single Resolution Fund will be set up to finance the resolution costs.

Basic account for everyone (Directive)

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The Commission wants to grant all EU citizens the right to have a payment account with basic features (basic account), make it easier to switch banks, particularly across borders, and improve the transparency and comparability of fees.

Long-term Financing of the EU economy (Green Paper)

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The Commission initiates a discussion on a range of possible measures which could help to promote the long-term financing of investment. These include government-backed savings models, greater focus on the capital markets in relation to financing, more voting rights for long-term shareholders and investment funds aimed at long-term investors.

Enhanced Cooperation in the Area of Financial Transaction Tax (Directive)

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In 2011, the Commission proposed a Directive for an FTT for the whole of the EU but the required unanimous agreement of the Council could not be achieved. The Commission is now proposing to introduce the FTT by way of enhanced cooperation between eleven Member States. The FTT is intended to generate more tax revenue and increase stability in the financial markets.

Information Accompanying Transfers of Funds (Regulation)

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The Regulation is to ensure complete traceability of transfers of funds in order to facilitate the "prevention, detection and investigation" of money laundering and terrorist financing. The Commission wants the Regulation to implement the recommendations of the Financial Action Transaction Force (FATF) of 2012. The FATF is an international body which develops measures to combat money laundering and terrorist financing.

Bank Resolution (BRRD) Part 1 (Directive)

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The Commission is seeking to prevent banking crises, strengthen financial stability and ensure that taxpayers do not shoulder the burden of future banking crises by establishing a recovery and resolution regime for banks and investment firms. Part 1 of the CEP Policy Brief deals with recovery and resolution plans and with further crisis prevention measures.

Bank Resolution (BRRD) Part 2 (Directive)

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The Commission is seeking to prevent banking crises, strengthen financial stability and ensure that taxpayers do not shoulder the burden of future banking crises by establishing a recovery and resolution regime for banks and investment firms.

Insurance Mediation (Directive)

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The Commission extends the scope of the current directive by including direct selling of insurances. In the future, intermediaries have to disclose to clients the commission or any other remuneration they receive upon selling an insurance. Only those intermediaries abstaining from commissions can call themselves “independent”.

Investment Products for Retail Investors (PRIPS) (Regulation)

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The Commission wishes to introduce uniform key information documents on investment products (PRIPS) in order to strengthen investor protection and to create a level playing field for investment product manufacturers. The key information documents must be provided to retail investors before the acquisition of an investment product (e.g. an investment fund) and must have a standardised structure.

EBA Banking Supervision (Regulation)

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The Commission wishes to delegate key tasks of banking supervision from national banking au-thorities to the European Central Bank (ECB). The tasks of the European Banking Authority (EBA) and the voting rules in its supervisory council must be adjusted accordingly.

ECB Banking Supervision (Regulation)

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The Commission wishes to delegate key tasks of banking supervision from national banking au-thorities to the European Central Bank (ECB). The tasks of the European Banking Authority (EBA) and the voting rules in its supervisory council must be adjusted accordingly.

Central Securities Depositories (CSD) (Regulation)

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According to the Commission, the costs and risks of cross-border securities transactions are too high compared to national securities transactions, the access of market actors – among them trade venues, central counterparties and central securities depositories – is limited and the competition between central securities depositories insufficient. The Commission wishes to address these deficits by measures to increase the safety of securities transactions and to open national securities markets. 

Shadow Banking (Green Paper)

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The Green Paper serves for the Commission as a basis for discussion. It wishes to find out what exactly shadow banking entities are, which activities they exercise and which benefits and risks are related to them as well as what a future regulation of shadow banking could look like. 

Card, Internet and Mobile Payments (Green Paper)

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The Commission aims to implement a fully integrated payment market in the EU. In its Green Paper, the Commission presents action plans for the market integration.

Audits (Regulation)

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The Commission wishes to boost competition on the audit market by the obligation to change auditors regularly (“rotation rule”). A prohibition of non-audit services (e.g. tax advice) is to strengthen the independence of auditors. 

MiFID (Directive)

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The Commission wishes to improve the transparency of financial market transactions, move derivatives trading to organised trading venues and strengthen supervision and competition. Moreover, it intends to strengthen investor protection. 

MiFIR (Regulation)

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The Commission wishes to improve the transparency of financial market transactions, move derivatives trading to organised trading venues and strengthen supervision and competition. Moreover, it intends to strengthen investor protection. 

Credit Rating Agencies (Regulation)

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The wishes to limit the term of the contracts entered into by credit rating agencies and issuers as well as the participation volume in credit rating agencies in order to strengthen the independence of credit rating agencies. In future, structured finance instruments will be subjected to ratings by at least two credit rating agencies. Moreover, the Commission wishes to prescribe civil liability for credit rating agencies. 

Criminal Sanctions for Insider Dealing and Market Manipulation (Directive)

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The Commission proposes to introduce EU-wide minimum rules regarding criminal sanctions for insider dealing and market manipulation. It wishes to harmonise the offences yet not the levels of penalties. To date, there are only administrative sanctions. The Commission’s aim is to increase the deterrent effect of national sanctions. 

Financial Transaction Tax (Directive)

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The tax is to apply to transactions with financial instruments, both in the organised markets and over-the-counter trading. It is to generate revenues for the public purse and to increase the stability of financial markets. The Commission expects EU-wide tax revenues of roughly 57 billion Euros a year. They are to flow wholly or partly into the EU budget through an own resources system of the European Union.

Capital Requirements (Basel III) (Regulation)

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Additional own funds buffers are to strengthen the banking sector’s resistance to losses and to smooth credit lending to economic cycles. The introduction of a binding leverage ratio and stricter liquidity requirements is to be examined. Infringements of rules are to be subjected to EU-wide sanctions. 

Capital Requirements (Basel III) (Directive)

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Additional own funds buffers are to strengthen the banking sector’s resistance to losses and to smooth credit lending to economic cycles. The introduction of a binding leverage ratio and stricter liquidity requirements is to be examined. Infringements of rules are to be subjected to EU-wide sanctions.

Insurance Guarantee Schemes (White Paper)

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With its White Paper, the Commission instigates a discussion on how to provide policyholders with comprehensive protection that is harmonised at EU level for the event of insurance companies becoming insolvent. Similar to the bank deposit guarantee scheme, the Commission’s aim is to establish a European guarantee scheme for insurances covering both life and non-life insurances. 

Mortgage Loans (Directive)

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The Commission proposes a Directive serving to contribute to a “smoothly functioning internal market with a high level of consumer protection” for mortgage lending. Herein the Commission focuses on consumer protection and rules for the activities of credit intermediaries.

Omnibus II (Directive)

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The Commission wishes to introduce a number of amendments to the Prospectus and Solvency II Directive. The aim is to extend the powers of the EU supervisory authorities (ESMA and EIOPA) to develop technical standards, to substantiate their arbitration powers and to introduce transitional periods for the Solvency II Directive. In addition, the Commission’s power to adopt implementing measures, which are still based on the legal position of the Treaty of Nice, are to be adapted to the Lisbon Treaty.

Audit Policy (Green Paper)

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The Commission submits a Green Paper in order to discuss the future role and scope of an audit in the “general context of financial market regulatory reform”. Governance rules and an improved supervision are to contribute to more competition and increased stability in the financial system.

Resolution of Financial Institutions (Communication)

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In Spring 2011, the Commission will be publishing a “European resolution framework”. This framework is to allow credit institutions to fail whilst avoiding costs to taxpayers and without endangering financial stability. 

OTC Derivatives (Regulation)

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The Commission is changing the rules regarding derivatives which are concluded and traded directly between counterparties (“over-the-counter“, OTC). It wishes that having OTC deals be cleared by central counterparties (CCPs) seated in the EU. Different regulations for financial service providers on the one hand and undertakings on the other hand, and a distinction between speculative OTC derivatives and those serving to hedge real corporate risks are to help improve the stability of the financial system.

Deposit Guarantee Schemes (Directive)

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The Commission intends to restrict the maximum repayable amount of EU deposit guarantee schemes to € 100,000 in future. Deposit guarantee schemes are being obliged to mutually grant loans.

In the middle of the financial crisis the Council and the European Parliament decided to increase the minimum coverage level to Euro 50,000 and – by the end of 2010 – up to 100,000. Issues such as the EU-wide harmonisation of the financing of deposit guarantee schemes and the establishment of a European deposit guarantee scheme were postponed to 2010.

The latest plans face substantial opposition. Several national parliaments intend to file a subsidiarity complaint, a procedure newly introduced by the Lisbon Treaty, in order to force the Commission to reassess the Proposal.

Credit rating agencies (Regulation)

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Since 2009, the Rating-CR regulates the registration and supervision of credit rating agencies at an EU-wide level. National supervisory authorities are key to this procedure. Now, the Commission wishes to change this: In September 2009, the Commission proposed to establish the European Securities and Markets Authority (ESMA) which is to be responsible for the supervision of credit rating agencies in future.

Prospectus (Directive)

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The amendment of the Prospectus Directive is part of a simplification programme by the Commission to cut administrative burdens. Against this background, the Commission wants to make it easier to issue securities in the EU. Also, it aims at increasing legal certainty and lowering costs.

European Supervisory Authorities (EBA, ESMA and EIOPA) (Regulation)

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Since the onset of the financial crisis the EU Financial Market Supervision, which is still very nationally-oriented, is up for discussion. Now, the Commission proposes the establishment of three European supervisory authorities (ESA) which are to ensure an improved prudential supervision of banks, insurances and investment firms.

European Systemic Risk Board (Regulation)

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Since the onset of the financial crisis the EU Financial Market Supervision, which is still very nationally-oriented, is up for discussion. Now, the Commission proposes that the ESRB is to monitor the stability of the entire European financial system. Moreover, three European Supervisory Authorities are to ensure an improved prudential supervision of single financial institutions.