About EU Regulatory Reform
AFME's work on EU Regulatory Reform is taken forward by a number of AFME divisions (e.g., Prudential, Accounting, and Compliance), in coordination with the EU Public Policy Committee. These bodies advocate on behalf of member firms on European and global regulatory and legislative developments that have a horizontal impact across AFME's business and policy divisions. Combining the expertise of the business and policy divisions with its globally integrated structure, AFME seeks to constructively engage with, and is able to provide authoritative industry views to, EU regulators and policymakers and international standard setters on a wide range of regulatory reform proposals. Objectives include:
- Create a more resilient, more transparent financial services industry that will:
- Better enable policy makers to monitor systemic risk;
- Better enable banks to withstand future shocks;
- Restore investor and public sector trust and confidence in financial markets; and
- Ensure consumers and businesses have access to capital to fund their operations and to grow;
- Design effective, appropriate, clear, and proportionate regulation of the highest standard that can be properly enforced and is informed by full and proper impact assessment;
- Promote harmonised and open pan-European markets; and
- Promote an internationally coherent and coordinated regulatory framework. See the Global Regulatory Initiatives page for more details.
Key Issues and Initiatives
High priorities
- Overhaul of prudential regulatory framework: material EU and Basel revisions in relation to market risk/trading book capital requirements; securitisation capital requirements; dynamic provisioning; counter-cyclical measures; leverage ratio; liquidity regulation and supervision; and large exposures;
- Proposals to establish a new EU Systemic Risk Board and EU system of financial supervision;
- OTC Derivatives reform proposals;
- Alternative investment funds managers' regulation;
- Crisis management and cross-border resolution proposals;
- G-20/FSB and international standard setters' (IOSCO, Basel, IASB etc.) initiatives; and
- EU-US Financial Markets Regulatory Dialogue.
Medium priorities
- Remuneration;
- EU and IOSCO initiatives impacting markets and conduct of business regulation, e.g., equities pre-trade transparency and 'dark pools'; fixed-income and OTC Derivatives post-trade transparency;
- Revision to investment firm conduct of business regulation/MiFID reviews, including review of suitability and client categorisation rules and Market Abuse requirements;
- Clearing and settlement regulation;
- Prospectus Directive review;
- Accounting reform;
- Implementation of regulation on credit rating agencies;
- Regulation of retail structured products; and
- Reform of corporate governance.
Organisation
The EU Public Policy Committee (EPPC), which comprises senior government affairs representatives of member firms, provides strategic input into the committee work of other AFME divisions and assists in the delivery of AFME's messages to policymakers.
Contact
Mark Hart, Managing Director
mark.hart@afme.eu
+44 (0)20 7743 9307