Regulatory dialogues and high level meetings on financial services regulation
The European Commission and EU governments hold regular talks on financial regulation with the USA and other international partners. The goals of these talks are
- monitoring regulatory developments
- identifying potential spill-over effects of legislation in each other’s jurisdictions
- converging towards international standards – taking into account the specific features of different regulatory frameworks and legal backgrounds
- exploring possibilities of mutual recognition of standards
- coordinating the implementation of the G20 roadmap
More information on the different regulatory dialogues and high level meetings on financial services regulation
- Regulatory dialogues with Canada in the CETA Financial Services Committee
- Regulatory dialogues with the USA
- Regulatory dialogues with Switzerland
- Regulatory dialogues with Japan
On 17 May 2023, the Commission adopted a draft Memorandum of Understanding (MoU) establishing a framework for financial services regulatory cooperation between the EU and the UK. This follows on a commitment taken in a joint declaration with the UK adopted on 24 December 2020, which accompanies the Trade and Cooperation Agreement (TCA). The MoU has been transmitted to the Council for its political endorsement, before it can be signed by the Commission on behalf of the EU. Once signed by both parties, this MoU will establish a joint EU-UK financial regulatory forum, which will serve as a platform to facilitate structured dialogue on issues related to financial services.
Bilateral relations on insurance
Bilateral dialogues on capital movements
In its bilateral relations, the EU uses investment dialogues and trade agreements to promote open investments and free capital movements.
Investment dialogues allow both sides to raise concerns about investment conditions in the other country and seek solutions to promote mutually beneficial investment flows.
The EU has also negotiated and continues to negotiate several bilateral trade agreements. These agreements usually cover capital movements and payments, with provisions ensuring that
- payment operations remain unrestricted
- transactions related to direct investment remain unrestricted
- temporary safeguard measures are only possible in the case of serious difficulties for the operation of monetary and exchange rate policy
Read more on the dedicated site of the European Commission.
Negotiations with EU candidate countries
Countries looking to join the EU have to demonstrate that they will be able to comply with all the EU standards and rules.
During the negotiations for a country to join the EU, the European Commission analyses each policy area in detail to determine how well the country is prepared to implement the body of EU law. This analysis covers both financial services and free movement of capital.
- the EU law for financial services that needs to be implemented in candidate countries includes rules for the authorisation, operation and supervision of financial institutions in the area of banking, insurance, occupational pensions, investment services and securities markets
- concerning capital movements, candidate countries must adapt their laws and institutions to guarantee the freedom of all categories of capital transactions, as listed in Annex I of Directive 88/361/EEC. EU rules in the area of capital movements are based on the Treaty on the functioning of the EU, in particular articles 63-66, and are directly applicable
Read more on the enlargement website.