On 21 April 2016, the European Commission published a speech given by Lord Hill, European Commissioner for the Directorate General Financial Services, Financial Stability and Capital Markets Union, on the Commission's review of the EU regulatory framework for financial services.

In his speech, Lord Hill provides an update on the review. Points of interest in the speech include the following:

  • Smaller banks feel strongly that the capital requirements are too onerous.
  • Companies both within and outside the financial sector are calling for more proportionality in EMIR.
  • Lord Hill takes very seriously businesses' complaints that they are reporting and disclosing the same information in different ways to comply with different pieces of legislation.

The Commission plans to hold a public hearing in May 2016, and to publish its next steps in Summer 2016, by which time Lord Hill advises it should be clearer on the follow-up actions that will be needed. The call for evidence forms part of the Commission's broader capital markets union initiative and was published in parallel with the CMU action plan.