Following on from the May European elections and the summer recess, the European institutions have started meeting again giving rise to some recent developments, in particular relating to the proposed EC Money Market Fund Regulation:
The previous Rapporteur for the draft Regulation, Said El Khadraoui, was not re-elected to the European Parliament and consequently a new Rapporteur needed to be appointed. It has recently been announced that a UK MEP, Neena Gill, has been appointed Rapporteur for the draft Regulation. While she has been an MEP for a number of years, she is new to the ECON Committee.
In addition, a number of “Shadow Rapporteurs” have been appointed by the other political groupings in the European Parliament. These “Shadow Rapporteurs” include the Irish MEP Brian Hayes, and another UK MEP, Syed Kamall, both of whom it is hoped will be aware of the importance of the MMF industry in its current form.
Next Steps in the European Parliament for the Draft Regulation
The ECON Committee did not manage to vote on the draft report on the draft Regulation before the May European Parliament elections. Accordingly, the new Rapporteur can either prepare her own report (with proposed amendments) or resurrect the previous report prepared by Said El Khadraoui.
On 29 September 2014, the European Parliament updated its procedure file on the draft Regulation. The procedure file indicates that the ECON Committee is scheduled to consider the draft Regulation in a committee meeting to be held on 23 February 2015 and, subject to that, the European Parliament is scheduled to consider the draft Regulation in its plenary session due to be held on 25 March 2015.
New European Commission
In addition, a new European Commission is being assembled. All Member States of the EU have nominated their proposed European Commissioners, and the President of the European Commission, Jean-Claude Juncker, has allocated portfolios to each of them.
A particular development for the financial services industry is that President Juncker has nominated a British appointee, Lord Hill, for the Financial Stability, Financial Services and Capital Markets Union portfolio, which we understand will include responsibility for the draft Regulation. Again, this is viewed, in part at least, as a favourable development for the financial services industry.
The European Parliament needs to vote in the new European Commissioners, and there were hearings during the month of September at which the European Parliament effectively interviewed the proposed new European Commissioners, and assessed their credentials for appointment. The new European Commission must take office by 1st November 2014.