Revised framework for investment firms

This briefing is one in a series of 'Implementation Appraisals' on the operation of existing EU legislation in practice. Each such briefing focuses on a specific EU law which is likely to be amended or reviewed, as foreseen in the European Commission's Annual Work Programme.

Implementation Appraisals aim to provide a succinct overview of material publicly available on the implementation, application and effectiveness of an EU law to date – drawing on available input from the EU institutions and external organisations. They are provided to assist parliamentary committees in their consideration of the new proposals, once tabled.The EU framework for investment firms consists of several legislative acts:

+ the Directive on markets in financial instruments (MiFID), + the Capital Requirements Regulation 575/2013 (CRR)
+ the Capital Requirements Directive 2013/36/EU (CRD).

Together with various international rules, these legislative acts lay down rules on the activity of credit institutions and their prudential supervision.

In 2016, the European Commission submitted two legislative proposals amending the CRR and the CRD and it now intended in 2017 to further revise the existing framework for investment firms. Research showed that there were several challenges influencing the current system, especially a plethora of investment firms with different prudential requirements, leading to legislative complexity and decreasing legislative clarity.

The European Parliament and the European Economic and Social Committee had, on several occasions, called for improvements to the existing framework. The European Commission itself had expressed a willingness to revise the CRR/CRD framework and it was expected that it would publish a legislative proposal (with its impact assessment) on a revised framework for investment firms on 20 December 2017.

• Primary Source

EP: EPRS: Briefing: Implementation Appraisal: Ex-ante Impact Assessment http://www.europarl.europa.eu/thinktank/en/search.html?policyAreas=EXIMAS

EP: EPRS: Briefing: Implementation in Action, November 2017: Implementation appraisals following the Commission Work Programme 2018 http://www.europeansources.info/record/implementation-appraisals-following-the-commission-work-programme-2018/

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