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European Financial Services Round Table

Publications & Research - Market Discipline


The EFR actively promotes the reinforcement and establishment of market discipline across the financial sector. Specifically, the EFR is spearheading the 'Prime Collateralised Securities market-led initiative' (PCS initiative) - aiming at revitalising the securitisation market in Europe.

The PCS initiative aims to reinforce the use of asset-backed securities as sustainable investment and funding tools for both investors and originators. It includes only asset classes that have performed well, are important for the real economy and meet investor needs on simplicity, transparency, quality and liquidity. Improving market resilience in Europe is a key consideration of this initiative.

Corporate governance in financial institutions
Weaknesses in corporate governance structures need to be addressed as the financial crisis demonstrated that insufficient internal checks and balances can destabilise the sound functioning of financial institutions. The EFR believes that improved corporate governance has to be achieved through a principles-based approach. It is essential to find an adequate balance between governance requirements, good management practices and financial institutions' freedoms to develop own internal governance structures. The EFR has been and will remain engaged in European consultations on governance issues.