Market welcomes EC's regulatory review

Author: Lizzie Meager | Published: 12 Oct 2015

As part of the Capital Markets Union (CMU) package, the European Commission (EC) has said it will review the effectiveness and coherence of legislation ushered in after the financial crisis. Market participants have welcomed the proposal with the view that it is long overdue.

The ultimate goal of post-crisis initiatives was to promote financial stability and ensure banks were safe to fail – but in achieving that, growth has been neglected somewhat. The CMU is widely viewed as different in this regard: its primary objective is to facilitate growth in Europe’s capital markets, and the Commission has recognised that in some cases the burden of regulation stifles that growth.

"It isn’t sufficient, or acceptable, for legislators to regulate without fully understanding the relationship between the various initiatives, and...