Financial services regulation should contribute to an environment that protects consumers, promotes market integrity and supports investment, growth and jobs.

Post-crisis reforms

Following the outbreak of the financial crisis the EU put forward an unprecedented series of reforms to restore financial stability and public confidence in the financial system. These reforms include

  • new rules to strengthen financial supervision
  • new tools for bank recovery and resolution
  • more effective deposit protection
  • an improved regulatory framework for banks, insurance, securities markets and other sectors.

Laws have also been adopted to tackle excessive volatility in financial markets, including new rules on hedge funds, short selling, credit rating agencies and derivatives.

New challenges

Overall, these reforms have made the financial system more stable and resilient. But the process of transformation needs to continue to address the remaining risks and to keep the regulatory framework up to speed with technological and economic developments.

The reforms introduced after the crisis also need to be monitored to check whether they are delivering as intended and to assess whether the new rules have any unintended consequences. The objective is to fine-tune the financial services regulatory framework with the adoption of targeted follow-up actions.

The EU is facing the departure of the United Kingdom from the Union and is examining the implications of this development in the area of banking and finance. Preparing for the withdrawal of the United Kingdom is not just a matter for EU and national authorities but also for investors and businesses. To help them, the Commission has published a series of notices setting out the implications of the UK withdrawal for banking and finance law.