The achievement of open strategic autonomy in the area of financial markets requires ensuring that the attractiveness of EU financial markets and the competitiveness of EU financial market participants remains a cornerstone of the EU’s financial strategy.
These
attractiveness and competitiveness considerations need to be integrated
into every aspect of the legislative work of the Union in relation to
financial markets to account for the diverse needs of EU investors and
corporate companies, to raise capital (equity listing, private equity,
bonds, etc.), invest (funds, structured products) and hedge risks (OTC
derivatives).
It is crucial that the recent European reform proposals ensure level
playing fields (in the implementation of Basel III as well as in the
on-going review of Solvency II for instance), foster the deepening of EU
financial markets (CMU initiative, securitisation market, etc.) and
enable to keep significant European players that need to be enhanced
rather than weakened by an excessive regulation and an efficient
deployment of the available capital in the markets.
Taking into account the elements of attractiveness and competitiveness in regulatory and supervisory work would imply:
- for each envisaged evolution of the regulatory framework, the impact
on the attractiveness of EU capital markets and on the competitiveness
of EU market participants is systematically assessed;
- adding the consideration of attractiveness and competitiveness as a
secondary statutory objective for selected European authorities (first
and foremost the European Supervisory Authorities).
In order to enable the Digital Transformation of the financial
services industry, the EU authorities need to ensure that the regulatory
framework for EU financial services is consistent at international
level, ensures fair competition, reduces the prudential burden for the
non-core business of regulated entities and adequately regulates new
entrants.
Additionally, in the wider digital context, the EU should enable its
financial sector to reap the benefits of a horizontal data sharing
framework and easily take up new technologies and develop digital
innovations (AI, cloud, DLT, crypto assets). This should be done through
a robust EU digital operational resilience framework (DORA).
- 141.1 EFR Paper Competitiveness
EFR
© EFR - European Financial Services Round Table
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article