Directive (EU) 2021/338 amending Directive 2014/65/EU as regards information requirements, product governance and position limits, and Directives 2013/36/EU and (EU) 2019/878 as regards their application to investment firms, to help the recovery from the COVID-19 crisis

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Series Details L 68, Pages 14-28
Publication Date 26/02/2021
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Summary:

Directive (EU) 2021/338 - signed by the co-legislators on 16 February 2021 - introducing a number of amendments to Directive 2014/65/EU, Directive 2013/36/EU and Directive (EU) 2019/878. This is a text with EEA relevance.

Further information:

Directive 2014/65/EU introduced a legal framework aimed at better regulation of trading activities on financial markets as well as enhanced investor protection. That legal framework became known as MiFiD 2. Directive 2013/36/EU - also known as the Capital Requirements Directive (CRD IV) - governs access to deposit taking by banks and investment firms. Directive (EU) 2019/878 amends some articles within CRD IV and adds new ones concerning exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers, and capital conservation measures.

The proposal for this Directive aimed at reducing some of the administrative burdens that investors face in their business-to-businesses (B2B) relationships, while maintaining the same level of protection. These changes became even more important in the context of the COVID-19 (coronavirus) pandemic as the businesses engage in recovery strategies. The Commission proposed to re-calibrate requirements to ensure that there is a high level of transparency towards the client, while also ensuring the highest standards of protection and acceptable compliance costs for European firms.

The draft was adopted by the Commission on 24 July 2020 as part of the so-called EU Capital Markets Recovery Package. The Council of the European Union adopted its general approach on 16 October. The plenary of the European Parliament adopted a negotiating position on 25 November. An informal agreement between the co-legislators on a compromise text was reached on 9 December. Following its formal endorsement by the European Parliament and the Council of the European Union (15 February 2021), the Act was signed by the co-legislators on 16 February 2021. It was published in the Official Journal on 26 February 2021.

Source Link http://data.europa.eu/eli/dir/2021/338/oj
Related Link(s)
Commentary and Analysis
EPRS: At a Glance, February 2021: Capital markets recovery package: MiFID and EU recovery prospectus https://www.europarl.europa.eu/thinktank/en/document.html?reference=EPRS_ATA(2021)679075

Official
EUR-LEX: COM(2020)280: Proposal for a Directive amending Directive 2014/65/EU as regards information requirements, product governance and position limits to help the recovery from the COVID-19 pandemic https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:280:FIN
EUR-Lex: SWD(2020)281: Staff Working Document accompanying the Proposal https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:120:FIN
European Commission: Publications: Coronavirus response: How the Capital Markets Union can support Europe’s recovery https://ec.europa.eu/info/publications/200722-proposal-capital-markets-recovery_en
European Parliament: Legislative Observatory: Markets in financial instruments: information requirements, product governance and position limits to help the recovery from the COVID-19 pandemic (2020/0152(COD)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2020/0152(COD)
European Parliament: Legislative Train Schedule: MiFID II Amendments | Information Requirements, Product Governance and Position Limits to help the recovery from the COVID-19 crisis https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-mifid-ii-amendments-tackling-covid-19-crisis/01-2021
European Commission: Press Release, 24/07/2020: Coronavirus response: Making capital markets work for Europe's recovery https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1382
European Commission: Coronavirus response: How the Capital Markets Union can support Europe's recovery (24 July 2020) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_1377
Council of the European Union: Press Release, 15/02/2021: Capital Markets Recovery Package: Council adopts first set of measures to help companies access funding https://www.consilium.europa.eu/en/press/press-releases/2021/02/15/capital-markets-recovery-package-council-adopts-first-set-of-measures-to-help-companies-access-funding/

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