EC VP on Capital Markets Union, Fintech, and Regulatory Coordination
The EC Vice President spoke, at the Eurofi Financial Forum 2017, about the Capital Markets Union, technological innovation, and global regulatory coordination.
He discussed the need to further strengthen Economic and Monetary Union (EMU) in Europe, toward which the EC will put forward concrete proposals by the end of the year. Building a more resilient EMU will also involve completion of the Banking Union and the Capital Markets Union (by 2019). Good progress has already been made on this. The new rules for prospectuses will take effect in mid-2019. They will help companies enter and raise capital on public markets. A new framework for simple, transparent and standardized securitization has been also agreed upon.
While delivering on the initial action plan, EC is also raising the level of ambition with the Mid-Term Review of the Capital Markets Union. In this action plan, EC called on member states to introduce portable electronic consumer identification across the EU. The recent consultations show that cross-border e-identity schemes are a key fintech enabler.
Additionally, this week, EC published a feedback statement from its public consultation on fintech. For a vibrant fintech sector, regulation must keep up with market developments. As part of the next week's reform of the EU's supervisory framework, EC will give a strong role to the ESAs on fintech. For example, they should coordinate national technological innovation tools such as innovation hubs or regulatory sandboxes. These reforms will contribute to the coherent regulatory approach Europe's fintechs need, to scale up and grow. EC is also working on a Fintech Action Plan, which it intends to present early next year. Fintech development is the most advanced in the payment sector. In October, EC will issue a standard to guide the communication between banks and fintechs that need access to account information.
With regard to the international regulatory cooperation, EC has had an excellent cooperation with the CFTC, as Mr. Giancarlo has just confirmed it. Good progress has been made on the mutual recognition of equivalent margin rules for uncleared OTC derivatives. EC is aiming to adopt its equivalence decision in the coming weeks and equivalence decisions on trading venues are also being worked upon. However, there can be no selective cherry-picking of measures—the set of reforms that was introduced in the wake of the global financial crisis must be seen as a whole.
Related Link: Speech
Keywords: Europe, EU, Banking, Capital Markets Union, Fintech, Global Regulatory Cooperation, EC
Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards