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These attractiveness and competitiveness considerations need to be integrated into every aspect of the legislative work of the Union in relation to financial markets to account for the diverse needs of EU investors and corporate companies, to raise capital (equity listing, private equity, bonds, etc.), invest (funds, structured products) and hedge risks (OTC derivatives).
It is crucial that the recent European reform proposals ensure level playing fields (in the implementation of Basel III as well as in the on-going review of Solvency II for instance), foster the deepening of EU financial markets (CMU initiative, securitisation market, etc.) and enable to keep significant European players that need to be enhanced rather than weakened by an excessive regulation and an efficient deployment of the available capital in the markets.
Taking into account the elements of attractiveness and competitiveness in regulatory and supervisory work would imply:
In order to enable the Digital Transformation of the financial services industry, the EU authorities need to ensure that the regulatory framework for EU financial services is consistent at international level, ensures fair competition, reduces the prudential burden for the non-core business of regulated entities and adequately regulates new entrants.
Additionally, in the wider digital context, the EU should enable its financial sector to reap the benefits of a horizontal data sharing framework and easily take up new technologies and develop digital innovations (AI, cloud, DLT, crypto assets). This should be done through a robust EU digital operational resilience framework (DORA).