29 January 2016

EuropeanIssuers: Response to Call for evidence on EU regulatory framework for financial services

EuropeanIssuers very much welcomes the call for evidence as they aim to ensure that EU policy creates an environment in which companies can raise capital through the public markets and can deliver growth over the longer-term.

Over the years, EU financial regulation has become extremely complex. As a result, the costs to companies are increasingly higher. This has a negative impact on all quoted companies, although often smaller ones are affected disproportionately due to a lack of available resources. Regulation is thus not designed for the needs of all the approximately 13,000 quoted companies across Europe.

EuropeanIssuers  therefore  believe  that  the call  for  evidence  on  the  EU  regulatory  framework  for  financial services measuring the possible impact and interaction of financial legislation is an important step forward in order to fully understand burdens on companies.

To  go  one  step  further  and  to  avoid  inconsistencies  as  well  as  incoherencies  in  the  future, EuropeanIssuers recommends for future initiatives of the EU Commission to consider new  proposal only  when  absolutely  necessary  and  following  conducting  well-grounded  and  well-designed  impact assessment studies (following the “Better regulation” approach).

Consequently, they think that EU institutions should spend more time on deep and thorough impact assessments, including scrutiny of consequences and interactions of new proposals with the existing legislation.  Impact  assessments  should  be  especially  carried  out  by  the  Commission  but – pursuant to  the  Better  Regulation  Guidelines - also  by  European  Parliament  and  Council,  in  advance  of substantial amendments.

Moreover, the consultation of various stakeholders should be enhanced. For instance, EuropeanIssuers would appreciate  to  see  a  higher  representation  of  issuers  within  various  stakeholder  and  expert  groups, maybe even by establishing a dedicated ‘issuers experts group’.

Full response

© EuropeanIssuers