The European Committee on Economic and Monetary Affairs have released a report regarding the future of the relationship between EU and third countries with regards to financial services supervision and regulation
The report suggests that:
- Through the EU’s relationship with third countries on financial services regulation and supervision, the EU should enhance tax cooperation with third countries, in accordance with international and EU standards.
- The process for granting equivalence to a third country in financial services should be subject to appropriate scrutiny by European Parliament and the European Council.
- A consistent framework for the ongoing supervision of an equivalent third country regime should be developed.
- The European Supervisory Authorities (ESAs) should be equipped with the power to advise the European Commission and review regulatory and supervisory developments in third countries, and that the European Parliament should be kept informed of ongoing regulatory and supervisory reviews of third countries.
- The European Commission should provide a clear framework for a transparent, coherent and consistent application of equivalence procedures to introduce an improved process for the determination, review, suspension / withdrawal of equivalence.
- Equivalence decisions should be subject to ongoing monitoring by the relevant ESA and for the outcome of such monitoring to be made public.
- The joint EU-US Financial Regulatory Forum be upgraded to include more regular meetings with the aim of a more frequent and consistent coordination.
Following this, and a review of the report in May 2018, the European Parliament are set to debate this matter on the 10th September 2018 and then vote the following day.
To read more, please follow this link: http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-%2f%2fEP%2f%2fNONSGML%2bREPORT%2bA8-2018-0263%2b0%2bDOC%2bPDF%2bV0%2f%2fEN
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Please Note: This publication is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying the information contained in this publication to specific issues or transactions.
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