| Author (Corporate) | European Commission |
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| Series Details | COM (2017) 791 |
| Publication Date | 20/12/2017 |
| Content Type | Policy-making |
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Summary: Proposal adopted by the European Commission on 20 December 2017 sets out requirements for the appointment of prudential supervisory authorities, the initial capital of investment firms, the supervisory powers and tools for the prudential supervision of investment firms by the competent authorities, and the publication requirements for competent authorities in the field of prudential regulation and supervision. The proposed Regulation was adopted together with a related proposed Regulation on the prudential requirements of investment firms. Further information: Investment firms provide a range of services that give investors access to securities and derivatives markets. They form a vital cog in any well-functioning Capital Markets Union (CMU) as they play an important role in facilitating savings and investment flows across the European Union. The Commission announced in its Mid-Term Review of the Capital Markets Union Action Plan it intended to propose a more effective prudential and supervisory framework for investment firms, calibrated to the size and nature of those companies. The need to update the regulatory framework in the EU when it comes to investment firms became even more pressing following the decision of the United Kingdom to leave the European Union. Under these proposals, the vast majority of investment firms in the EU would no longer be subject to rules that were originally designed for banks. The European Parliament approved its negotiating position on this proposal on 24 September 2018. On behalf of the Council of the European Union, member state ambassadors backed a general approach on 7 January 2019. An informal agreement between the co-legislators on a compromise text was reached on 26 February. The Parliament formally endorsed it on 16 April, followed by the Council on 8 November. |
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| Source Link | Link to Main Source https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2017:791:FIN |
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| Subject Categories | Business and Industry |
| Subject Tags | Capital Markets Union [CMU], Financial Services |
| Keywords | Investment Firms |
| International Organisations | European Union [EU] |
