Better Regulation and Regulatory Fitness and Performance (REFIT) programme
The European Commission recently undertook a review of all financial regulations since the financial crash to ensure they “deliver real value and results”. This review is part of a wider Better Regulation and Regulatory Fitness and Performance (REFIT) programme to ensure the European regulations are having their intended consequences and at minimum cost to the Eurozone economy.
“The commission has concluded that overall the financial services framework in the EU is working well. However, targeted follow-up action is required in the following areas:
⦁ enhancing the proportionality of rules without compromising prudential objectives;
⦁ reducing undue regulatory burdens;
⦁ making rules more consistent and forward-looking.“ Commission Communication on the call for evidence: EU regulatory framework for financial services (EC, Nov 16)
- Inviting industry feedback to their analysis, more than 300 market participants responded to the call for evidence in what was the “first example of such an exercise internationally undertaken in this sector”.
Regulatory reporting was one of the topics consistently raised by respondent s to the consultation. The respondents stated that “Supervisory reporting requirements are perceived as too numerous and too complex. The complexity is to a large extent due to duplications and overlap across different reporting frameworks, but also to insufficient standardisation and the lack of clarity on what needs to be reported” Follow up to the Call for Evidence – EU regulatory framework for financial services (EC, Dec 17)
The costs incurred by market participants during implementation of reporting regimes are seen as “substantial one-off costs.” Additional costs are then incurred by “ad hoc requirements, e.g. requests by supervisors that go beyond the regular reporting requirements.” Follow up to the Call for Evidence – EU regulatory framework for financial services (EC, Dec 17)