ECB has published the Eurosystem’s response to the Commission’s now-closed call for evidence on the EU regulatory framework for financial services (see FReD 2 October 2015). The response:
- calls for initiatives supporting the financing of the economy to maintain the robustness of the post-crisis regulatory framework;
- warns that the risk of a reassessment of the framework could lead to a wave of deregulation like the one that led to the financial crisis;
- warns against drawing conclusions from the transitional stages and early years of implementation of new legislation;
- indicates that a proportionate approach to the application of regulation should not be based purely on the size of financial institutions but should consider other characteristics such as the riskiness of an institution; and
- calls for the regulatory agenda to be finalised, including those outstanding measures relating to total loss absorbing capacity, the fundamental review of the trading book and the recovery and resolution of CCPs.