Alongside banks, EU capital markets rely on thousands of small and large investment firms. These firms give investment advice to clients, help companies tap capital markets, manage assets, and provide market liquidity, thereby facilitating investments across the EU. Under the proposals, the vast majority of investment firms in the EU would no longer be subject to rules that were originally designed for banks. This will reduce administrative burden, boost competition and increase investment flows – all of which are priorities of the capital markets union – without compromising financial stability. At the same time, the largest and most systemic investment firms would be subject to the same rules and supervision as banks.

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