Strengthening the regulation of the financial sector is essential to provide an effective response to the financial crisis and put the EU back on the path of sustainable growth. The Commission therefore adopted, in 2011, a set of legislative proposals to establish the core elements of a new financial regulatory framework that would make the financial system more resilient. All legislative acts were to be adopted under the ordinary legislative procedure, placing Parliament on an equal footing with the Council in this crucial policy field.
To date, the progress achieved by sector is as follows:
Venture capital funds
The new rules were adopted by Parliament and Council in March 2013. They set out a new label "European Venture Capital Fund" and they allow venture capitalists to market their funds across the EU and use uniform rules.
Credit rating agencies
Thanks to the compromise reached between the Parliament and the Council, new rules were introduced in May 2013. These rules enhance the integrity, transparency, responsibility, good governance and independence of credit rating activities
Credit institutions and investment firms
In June 2013, Parliament and Council adopted new legislation on capital requirements for credit institutions and investment firms putting in place a comprehensive framework and fostering enhanced risk management amongst financial institutions. The new rules also regulate the access to the activity of credit institutions and investment firms, the methods for their governance and their supervisory framework.
Markets in financial instruments
In January 2014, Parliament and Council reached an agreement on updated rules for markets in financial instruments (MiFID II). Once they are formally adopted by Parliament and Council, these new rules will improve the way capital markets function to the benefit of the real economy. These rules are meant to achieve greater transparency, improved competition and enhanced investor protection through measures such as the compulsory trading and clearing of derivatives on well-regulated and transparent platforms.
Market abuse package
Lastly, as part of the new rules agreed by Parliament and Council, traders found guilty of insider dealing and market manipulation would face a prison sentence. The formal approval of the agreement is scheduled for spring 2014.