The European System of Financial Supervision (ESFS) was introduced in 2010. Since introduction, a number of legislative acts have been adopted in the EU, but not implemented into the EEA-agreement, largely because of constitutional issues related to the ESA Regulation. There is still approximately 150 financial legislative acts that have not yet been implemented.
MiFID II/MiFIR will strengthen investor protection and improve the functioning of financial markets making them more efficient, resilient and transparent. Comparing the implemented acts to the acts deemed by the European Commission to have relevance for MiFID II/MiFIR, there is only four of the legislative acts deemed relevant by the Commission that were not implemented.
Furthermore, CRD IV/CRR and relevant legislative acts were implemented. These acts lowers capital requirements for Norwegian banks when lending to small and medium-sized enterprises (SME). Thus, the risk based solidity requirements for Norwegian banks will to a higher degree correspond with the requirements for banks in other jurisdictions.
The Prospectus Regulation were also implemented. The Regulation brings about major changes to the prospectus regulation in the EEA, following up the European Commission’s idea of a Capital Markets Union.
Our Financial Regulatory Group regularly advices clients on issues related to these legislative acts, and closely follows the developments of these regulations in the EU.