In its decision dated 19 March 2019, the General Court of the EU annulled the Commission’s decision 2016/1208 of 23 December 2015, which had concluded that the support provided by the FITD (Italian Deposit Guarantee Scheme, or ‘DGS’) to one of its members, the regional Italian bank, Tercas, amounted to ‘’aid illegally granted by the … Continue reading General Court’s blow to the Commission’s strife to end bail-outs: Tercas’ state aid decision annulled
Crypto tokens are – in most jurisdictions – far from being “fully regulated”. This does not only pose a challenge for investors or market players, but also for supervisory authorities, which depend on a somewhat clear-cut legal framework. On the one hand, the authorities risk a state of legal uncertainty by abstaining from official statements … Continue reading Crypto Tokens, Legislative Intent & Prerogative of Interpretation – The current Dilemma for Supervisory Authorities
The European Commission’s recent proposal for a pre-marketing definition both in the AIFMD and EuVECA-Regulation is a cause for concern. Not only is the definition too restrictive, thus conflicting with current market standards, it also leaves key aspects open to interpretation and, therefore, provokes legal uncertainty. This post is a short, critical analysis of the … Continue reading Killing Investor Appetite – The European Commission’s Proposal for a Harmonized Pre-Marketing Definition
Following the Global Financial Crisis, regulators are committed to reduce the likelihood and severity of future crisis. In the area of financial derivatives, regulation is focused on increasing transparency, strengthening market infrastructure, and reducing systemic risk. In our book ‘Regulation and Supervision of the OTC Derivatives Market’, we are looking at these post-crisis regulatory reforms. Our … Continue reading Regulation and Supervision of the OTC Derivatives Market (Book, Routledge, 2018)
In a recently published ECB legal working paper, I analyse regulatory solutions that have been adopted to address constitutional constraints imposed on the functioning of the Single Supervisory Mechanism (SSM), in which the ECB’s exclusive supervisory competence is carried out. I argue that the operational framework governing the functioning of the SSM has assimilated, to … Continue reading The Eurosystem and the Single Supervisory Mechanism: institutional continuity under constitutional constraints
Banking Union has revolutionised EU banking regulation and supervision by centralising decision-making processes and strengthening policy tools associated with specific policy aims – financial stability in particular. This post argues that in the absence of explicit hierarchy between policy objectives under EU law, symmetry within EU bank regulatory architecture is required. Implementation of other relevant … Continue reading Symmetry in EU banking regulation – getting the policy implementation mix right in the Banking Union era
The never-ending story of non-performing loans (NPLs) in the eurozone has now developed into a legal discussion. The ECB started out with „guidance to banks on NPLs“ in March last year and a subsequent „addendum“ presented in October. That NPL guidance has been criticised by the European Parliament and the EU Council for being a … Continue reading ECB’s “Power Grab”? The NPL guidance, it’s legal
Only shortly after its creation, the European Banking Authority (EBA), the EU agency that was established in 2011 to foster a harmonized approach towards banking regulation and supervision in all EU Member States, found itself in an existential struggle: The financial crisis continued with full speed and even transformed itself into a full-fledged sovereign debt … Continue reading First Banking Union, then ‘Brexit’: Is the EBA dead?
Following the decision of the British electorate to leave the European Union (EU), the concerns of the UK-based banks are focused on the critical issue of “passporting” rights, which allow UK-licensed financial institutions to provide financial services directly to customers in other EU Member States. In a previous post, we have already sketched out the baseline scenarios … Continue reading Banks without passports: How deep is the Brexit cliff?
Lawmakers, regulators and academics spend much energy reforming the substantive regulatory subject matter. The equally important question of how to transform this „law in the books“ to the „law in action“ is less prominent. This is astonishing, given that the prevalent systems of both sectoral (banks, capital markets, insurance; e.g. the US system with OTC, … Continue reading Regulators’ competition: Towards an objective based regulatory architecture