Before the elections a rush of major pieces of legislation were passed including banking union, changes to trading rules and bank resolution. This left proposals including structural reform of banks, shadow banking, financial benchmarks, long term investment funds and insurance brokering. Many of the key MEPs previously involved in negotiations have been re-elected and so will continue negotiations; but we have some ‘new faces on the block’ so it will be interesting to see if new ideas start to emerge. Over the summer, the political groupings will agree and reappoint those MEPs who will be involved going forward. For some, it will be a steep learning curve to understand both the technical details and also the political dynamics.
The Italian presidency which began its six-month term in July has already published the draft agendas for the meetings between member states for the rest of the year. Key pieces of financial regulation which the Italian team will seek to make progress on include FTT, banking union, insurance brokering, payment services and credit card fees, financial benchmarks and shadow banking.
For the Commission, work continues on the thousands of pages of ‘level 2’ technical texts which the European supervisory agencies will be working on. A new legislative work programme will also come once Commissioner Barnier’s successor in DG MARKT is appointed. After being formally voted in by the European Parliament, President Juncker published an overview of his policy agenda for the new Commission which focuses heavily on jobs, growth and investment. Regulation of financial services doesn’t feature significantly beyond references to completing the FTT and working towards a Capital Markets Union.
Given the volume of work still to be done on the current legislative programme the lack of any major new items will be welcomed. How long a respite from new EU rules the industry will see it will be remains to be seen as new proposals will inevitably appear and additional requirements will need to be developed in response to standards from the BCBS, IOSCO and IAIS which will come to the EU to implement.
In the background is the G20 summit – where we are expecting a number of papers to be tabled.
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