Introduction to European Financial Regulations

Financial regulations can broadly be broken down into 2 categories; those to regulate the banking industry and those developed to regulate the transparency, fairness and resilience of capital markets.

Banks are systematic to the whole of the financial services industry –their activities are fundamental. A loss of a bank’s function can have far reaching effects to the wider industry and even economy – known as contagion.

Capital markets regulation is of equal significance, however applies to a larger number and wider range of organisations that make up the financial services sector. It involves the regulation of markets, activities that occur on these markets and the onward trading (off exchange) of financial products available on these markets. 

Control Now provide solutions to support firms affected by capital market reforms – specifically transaction reporting.

Financial regulations are usually a result of the political will of international bodies to ensure financial markets remain fair, healthy and able to sustain economic shocks. There are 2 clear sources of the European Financial Regulations – the G20 and the European Commission.