Capital Markets Union: more proportionate and risk-sensitive rules for stronger investment firms

Europe’s capital markets will be more efficient and better supervised thanks to a revamp of rules for investment firms. The European Commission is proposing a two-track overhaul to make life simpler for smaller investment firms, while bringing the largest, systemic ones under the same regime as European banks. Investment firms and the services they provide are vital to a well-functioning Capital Markets Union (CMU).
Alongside banks, EU capital markets rely on several thousands of small and large investment firms which give advice to clients, help companies to tap capital markets, manage assets, and provide market liquidity, thereby facilitating investments across the EU.
The EU needs stronger capital markets in order to promote investment, unlock new sources of financing for companies, offer households better opportunities and strengthen the Economic and Monetary Union. Under today’s 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 CMU, 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.
Source: http://europa.eu/