The European Commission ("EC") published a follow-up report on a 2015 " Call for Evidence" regarding the European Union financial services regulatory framework. The first set of requests was intended to assess the effectiveness of European Union ("EU") regulatory legislation adopted since the financial crisis. A subsequent related communication in 2016 identified four areas for follow-up measures: (i) reducing unnecessary regulatory constraints, (ii) enhancing the proportionality of rules, (iii) reducing undue regulatory burdens, and (iv) making the regulatory framework more consistent.
The current progress report concludes that the EU framework is working as intended, and that the implemented reforms were necessary. The EC reported improvements in (i) conduciveness to lending and investment, (ii) acknowledgment of the unique characteristics of smaller and less risky firms, and (iii) the minimization of compliance burdens. Going forward, the EC recommended that the regulatory compliance framework should be fit for the digital age, where possible, through automation and standardization. The EC also committed to a more comprehensive approach to the EU supervisory reporting framework, with the aim of improving the quality and accessibility of data.
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