On Monday 29 July, the European Commission published a communication on its equivalence policy with non-Member States in the field of financial services, in which it considers that the current approach makes it possible and will continue to make it possible to guarantee financial stability while opening up markets.
This assessment follows a first assessment, presented in February 2017, on equivalence in the financial sector (see EUROPE 11734/20).
In the publication of 29 July, the Commission recalls the latest legislative developments having an impact on equivalence policy, in particular concerning the reform of European Supervisory Authorities (see EUROPE 12219/6), the supervision mechanism for central counterparties (see EUROPE 12213/32) and the prudential treatment of investment firms (see EUROPE 12203/3).
A positive equivalence decision towards a non-Member State taken by the Commission results in the EU authorities relying on that country's regulatory and supervisory framework for financial markets. The institution reports that more than 280 decisions in more than 30 countries have been adopted in recent years.
The paper concludes that the equivalence policy is a “flexible regulatory instrument capable of building bridges” between different jurisdictions. While there is still work to be done in this area, particularly in terms of monitoring, the Commission believes that equivalence will continue to bring “tangible benefits”, both for the EU and for non-Member State jurisdictions. (Original version in French by Lucas Tripoteau)