News - 23.05.2024

Focus on EU Regulatory Agenda

  • Regulation

The regulatory process in the European Union is constantly evolving, particularly in the financial sector. Over the past five years, new challenges related to the digitalisation of finance, climate issues, and anti-money laundering have emerged, prompting significant regulatory updates.

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In our recent “Focus On” livestream, which reviewed the financial regulatory agenda, Alexandra Jour-Schroeder, Deputy Director General of DG FISMA, highlighted the Commission’s commitment to continuing the work already in progress. “We will also be making major efforts to advance the Capital Markets Union, which has seen increasing interest from political leaders for some time now. The stakes are high when it comes to developing access to finance for businesses, especially SMEs.” However, as Claire Guilbert, Partner at Norton Rose Fulbright, points out, “we need to find the right balance between protecting retail investors and other participants, such as managers and distributors, for whom the regulatory burden can become an obstacle.”

Markus Lange, Partner at Baker Tilly, emphasised that significant work has been done on climate regulation, particularly through a highly complex taxonomy. However, these measures must now be effectively applied to the real economy. Dr. Stanilaw Tosza, Professor at the University of Luxembourg, noted the strengthening of AML directives with the creation of a European supervisory body, AMLA, which will coordinate national supervisors’ efforts to achieve greater harmonisation of controls.

Finally, a major project is already underway for future European leaders. In June 2023, the Commission proposed the Fida (Financial Data Access) regulation, which aims to give consumers greater access to their financial data and facilitate switching between financial service providers. “With Fida, we will be moving from open banking to open finance,” enthuses Josy Soussan of fintech Klarna. It should also enhance the partnership between fintechs and financial institutions, a path opened up by PSD2.

View the full replay here.