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European Financial Services Round Table
 





Friday, January 29, 2016
EFR Response to the Call for Evidence
Today the European Financial Services Round Table (EFR) has submitted its response to the Call for Evidence launched on 30 September 2015 by the European Commission on the benefits, unintended effects, consistency and coherence of the financial legislation adopted in response to the financial crisis.

The EFR supports regulation that is aimed at transparency and stability in financial markets, that ensures a European as well as global level playing field and that is supportive of the European financial industry playing a central role in the European economy, to the benefit of all parts of society.

The timing of this exercise of the Call for Evidence is particularly important, in light of concerns voiced over the calibration of some of the reforms and the ability of the financial industry to fulfil its core role of financing the European economy, and on the eve of further substantial reforms coming from the BCBS and IAIS. At the same time, the Juncker Commission has announced an ambitious Investment Plan, which is clearly complemented by the CMU action plan. In this respect, revisiting the balance between constraining measures, which were necessary because of the financial crisis, and growth-enabling measures focused on underpinning the Investment Plan for Europe and the Capital Markets Union is necessary.

The financial industry wants to engage fully in financing long-term investment, managing risks and providing liquidity to markets. It is imperative that public policy creates the right incentives for the market to allocate resources towards these areas. We hope that the examples put forward by the industry in response to the call for evidence will assist in addressing this challenge.

As regard any future legislative proposals, it should be stressed that market participants need a regulatory pause to achieve much needed legal certainty and predictability.

The EFR hopes that this exercise is the start of an ongoing dialogue with the Commission on possible amendments to existing legislation and to provide feedback in due course on the impact of those legislative measures whose implementation is not yet over.