Regulatory Framework - European Regulation

Question 1

Aims of having a single market

Answer 1

• reduces barriers to trading
  -similar regulatory rules will be in place in all countries
  -makes no difference to a customer whether they buy a financial product from a provider in their home, or from another member state

will ‘act as a catalyst for economic growth across all sectors of the economy, boost productivity and provide lower-cost and better quality financial products’

Question 2

The European Commission

Answer 2

Steered by 27 Commissioners, one from each member state, known as ‘the college’

They take decisions on the Committee’s political and strategic direction. New college is appointed every 5 years.

The commission is independent of national governments and represents and upholds the interests of the EU as a whole.

Main tasks are
- right of the legislative initiative - all decisions are taken by the European Council have to be based on a proposal from the Commission.
-guardian of the treaties
-executive authority for the implementation of EU policy
-enacting technical standards drafted by ESMA

Question 3

European Parliament

Answer 3

The Parliament is supposed to express the democratic wishes of EU citizens and represents their interests in discussions with other EU institutions.
MEPs sit in Europewide political groups rather than in national blocks.

Principal roles
- examine and adopt European legislation
-approve the EU budget
- exercise democratic control over the other EU institutions

Question 4

European Council

Answer 4

The European Council defines the EU’s overall political direction and priorities.

It is not one of the EU’s legislating institutions, so does not negotiate or adopt EU laws (the Council of the EU and the EP are responsible for adopting laws proposed by the Commission).