Report on the follow-up to the Call for Evidence: EU regulatory framework for financial services

On 30 September 2015, the European Commission launched a Call for Evidence on the EU regulatory framework for financial services. Its purpose was to check whether the more than 40 pieces of EU legislation adopted since the financial crisis were working as intended.

More than 300 stakeholders shared their experience of implementing EU financial regulations and provided their assessment of the individual and combined impact of EU rules. The Call for Evidence, which was the first example of such an exercise internationally undertaken in this sector following the response to the financial crisis, has demonstrated the Commission’s commitment to the Better Regulation agenda, which aims to ensure that EU legislation delivers the expected results for citizens and businesses effectively, efficiently and at minimum cost.

In November 2016, the Commission adopted a Communication on the follow-up to the Call for Evidence and published a staff working document accompanying the Communication. The Commission concluded that whilst the financial services framework in the EU was generally working well, targeted follow-up measures were justified in four areas.

One year after the adoption of the Communication, this progress report provides an update on the follow-up to the Call for Evidence. There are two main messages to emphasise in this context:
1) the Commission has been active in tackling the issues identified by stakeholders in the Call for Evidence process and continues to do so to ensure that EU legislation remains fit for purpose.
2) the Commission is working to ensure that the regulatory compliance framework is fit for the digital age, where possible through automation and standardisation. This should ultimately lead to reducing the burden for industry and result in better financial supervision.

More generally, the Call for Evidence process has helped to ensure that individual legislative proposals are put into a broader context. Moreover, developments in the financial sector and the economy more broadly, including rapid technological change, also need to be taken into account to ensure that the rules remain suited to the changing realities. Overall, the Call for Evidence has proved to be a significant exercise with lasting impact that should lead to improved law-making in the EU.

ESO: Commission publishes results of Call for Evidence on EU financial services [European Commission: Press Release, 23.11.16] http://www.europeansources.info/record/commission-publishes-results-of-call-for-evidence-on-eu-financial-services/

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