MiFID A Brussels perspective
MiFID A Brussels perspective
An update on EU Financial Services and associated initiatives
A Brussels perspective
Dr. David P. Doyle
EU Policy Adviser – Financial Services Regulation
Building constructive links at Pan-EU level
UEAPME – leading EU SME representative body
Cross-party MEP groups (Kangaroo Group, SME-UNION, Enterprise First Europe…)
Pan-EU trade and industry bodies:
EuroChambers – European chambers of commerce
BusinessEurope – EU employers Federation
EU Banking Federation
Conference Board Europe
ESC – European Economic and Social Committee
ETUC – European Trade Union Council
Permanent Representations of each EU state to the EU (diplomatic missions)
Any action must remain within the scope of the Treaty
Action should be taken by the body best placed to act, i.e., does action at community level
provide added value?
Action should be proportionate
736 MEPs – elected for five years
Meets in Strasbourg and Brussels
Previously, powers vary according to treaty provisions, but increasingly assertive on all EU legislation
Significant new powers under the Lisbon Treaty
Joint-powers to pass legislation (with EU Council)
Operates on basis of 20 thematic committees:
Vice chairmen x 3
Political group co-ordinators
Rapporteurs and shadows
EU state holding EU Presidency
Political group secretariat
Economics and Monetary
Legal Affairs Committee
Composition of the MEPs
United Kingdom 72
27 Commissioners, 1 from each Member State.
Appointed not elected.
One for each EU State.
Commissioners collectively known as ‘College’,
head by President (Barroso).
10,000 EC officials.
Divided in Directorates (roughly equivalent to
does it do?
Sole right of initiative to propose leg
– Power to make Secondary legislatio
– Responsible for day-to-day running
institution (Chairs Management and
Regulatory Committees, i.e., Comm
– ‘Guardian’ of the Treaties.
influential Directorates: Trade, Internal Ma
Economics & Monetary Affairs, Enterprise.
Council of ministers
• Ministers and Commissioners –
• Adopts legislation (with EP)
• Various Council formats (i.e., Health,
• Chaired by country running the EU
• Ministerial meetings held in Brussels
• Supported by Secretariat
A charged EU Agenda since the financial crisis
Regulate both capital markets and market actors
38 separate pieces of draft legislation
Filling-in the gaps where European or national regulation is
insufficient or incomplete
Expansion of scope of regulation: all financial institutions,
intermediaries (transactional and advisory actors) and financial
More focus on Pan-EU centralised authorisation and supervision,
with “implementing powers” vested in 3 authorities: ESMA, EBA &
Less directives and more regulations – assures faster
implementation and less scope for gold plating and divergent
Stronger powers for EU Commission (“delegated powers”)
Stronger powers for EU Parliament (Lisbon Treaty): life-cycle
review and approval of draft legislation
Built-in “sun-set clauses” to review EU laws after 3-5 years
Brussels: Perception persists that the financial crisis is not over
and that debt financing for the SME sector is dwindling
Remuneration and bonuses
Pan-EU Supervisory Mechanisms
Hedge Funds & Private Equity
OTC Derivatives, Short-selling
Solvency II – Insurance
Responsible Lending & Borrowing
Packaged Retail Investment Products (PRIPs)
Capital Requirements Directive IV
Credit Rating Agencies
Market Abuse updated rules
Financial Transactions Tax (FTT)
Living wills for banks
Corporate governance in financial institutions & listed companies
The EU legislative response to the financial crisis
All that is of systemic importance should be regulated and supervised.
Need for better capitalised finance industry, with less leverage.
Perverse incentives in the financial sector should be tackled.
Supervision should have the right tools to grasp complex, inter-connected and globa
financial nature of activities.
Restore trust, investors and consumers should benefit from clearer, more coherent
EC approach to improving corporate governance in small and nonlisted companies
Should EU corporate governance measures take into account the size of listed
Should a differentiated and proportionate regime for small and
medium-sized listed companies be established? If so, are there any appropriate
definitions or thresholds? Can these be adapted for SMEs?
Should any corporate governance measures be taken at EU level for unlisted
Should the EU focus on promoting development and application of voluntary
codes for non-listed companies?
Agenda in the retail investment space
Mediation Directive (IMD)
Packaged Retail Investment Products (PRIPS)
Reform of the EU Pensions Regime
Reform of corporate governance policies within financial institution
“European consumers deserve better. They need reassurance that their savings,
investments or insurance policies are protected no matter where in Europe they are
based” (Commissioner Barnier, 2010).
The SME Agenda
Small Business Act launched in 2008 - proposing a wide ranging set of
pro-enterprise measures designed to facilitate the business operations
Access to Venture Capital
A light touch financial reporting regime Micro-enterprises
A Directive on e-invoicing, particularly helpful to small businesses, by making einvoices equal to paper ones.
Empowering Public authorities to be required to pay within 30 days as a
security guarantee for SMEs.
Exploring options for setting up an intellectual property rights instrument at
the European level, in particular, to ease SMEs' access to the knowledge
The SME Agenda - Other initiatives
Legislative proposal for a Common Consolidated Corporate Tax Base (CCCTB) propose a new VAT
strategy aiming notably at reducing tax obstacles and administrative burdens for SMEs in the Single
Facilitate cross-border debt recovery
Propose an instrument of European Contract Law
Undertake a revision of the European standardisation system in 2011 to ensure, that it addresses to the
needs of SMEs
Explain the rules on labelling of origin and inform SMEs about the means available to them to protect
their legitimate interests.
Create mentoring schemes for female entrepreneurs in at least 10 EU countries to provide advice and
support with the start up, functioning and growth of their enterprises
Reduce the time needed to get licences and permits (including environmental permits) to 1 month by
the end of 2013
Promote second chances for entrepreneurs by limiting the discharge time and debt settlement for an
honest entrepreneur after bankruptcy to a maximum of three years by 2013
David P. Doyle
EU Policy Adviser – Financial Services
Email: [email protected]