On November 21, 2014, the European Central Bank (“ECB”) published an Opinion welcoming proposals for a new regulation on structural measures to improve the resilience of EU credit institutions. The proposed regulation aims to create a more harmonized EU framework where there is a risk of potential fragmentation due to different structural regimes on a national level, and is aimed at the largest EU banks. The ECB states in its Opinion that it supports the ban on proprietary trading as well as the prohibition for certain banks to own or invest in hedge funds. The ECB also suggests some amended wording to the proposed regulation, which would include further detail and clarification on the prohibited activities.

The Opinion and proposed regulation are available at:

http://ec.europa.eu/transparency/regdoc/rep/1/2014/EN/1-2014-43-EN-F1-1.Pdf

and

http://www.ecb.europa.eu/ecb/legal/pdf/en_con_2014_83_f_sign.pdf.