Prudential requirements and supervision of investment firms
Investment firms play an important role in capital markets, facilitating savings and investment flows across the EU. However, the current EU rules are seen as fragmented, overly complex, inconsistently applied and often a poor fit for the actual risks taken by the various types of investment firms. The Commission proposed a new regulation on the prudential requirements of investment firms and a new directive on the prudential supervision of investment firms. These proposals update the framework for investment firms, making it more effective and more closely calibrated to the size and nature of the various investment firms and their risks. Parliament's Committee on Economic and Monetary Affairs (ECON) agreed its report and negotiating mandate on 24 September 2018. On 20 March 2019, provisional agreements were reached by Parliament and Council negotiators. Parliament adopted the texts at first reading on 16 April 2019. Following linguistic corrections, corrigenda were endorsed by Parliament in October, and the regulation and directive were adopted by the Council then signed into law on 27 November. Both will apply in full from 26 June 2021. Second edition of a briefing originally drafted by David Eatock. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.
Briefing
About this document
Publication type
Author
Keyword
- administrative supervision
- budget
- capital market
- disclosure of information
- EDUCATION AND COMMUNICATIONS
- EU institutions and European civil service
- European Banking Authority
- EUROPEAN UNION
- European Union law
- executive power and public service
- FINANCE
- financial control
- financial institutions and credit
- financial legislation
- free movement of capital
- information and information processing
- information technology and data processing
- investment company
- market supervision
- monetary economics
- POLITICS
- private-sector liquidity
- proposal (EU)
- TRADE
- trade policy
- venture capital