Part I General, 5 Corporate Law Versus Financial Regulatory Rules: The Impact on Managing Directors and Shareholders of Banks »
Kitty Lieverse, Claartje BultenFrom: Governance of Financial Institutions
Edited By: Danny Busch, Guido Ferrarini, Gerard van Solinge
This chapter discusses the impact of financial regulatory rules on the corporate governance of banks established in Europe. Banks are not ordinary companies. In view of their activities, banks also have to deal — through financial supervision — with extensive regulation of public interests. This impacts both the structure of banks and the manner in which they operate. A further dimension is added because of the European origin of the financial regulatory rules for the banking sector and because the European Central Bank (ECB) acts as a single supervisor. The impact of financial regulatory rules, including intervention by the supervisor, on the corporate governance of banks might potentially provide for European harmonisation of national company law based on the public interests that are being pursued for this sector.
Kitty LieverseFrom: Prospectus Regulation and Prospectus Liability
Edited By: Danny Busch, Guido Ferrarini, Jan Paul Franx
This chapter offers a comprehensive treatment of the obligation to publish a prospectus, including the available exemptions. The Prospectus Regulation provides for an update of the prospectus obligation and the exemptions thereto. However, the provisions that determine the requirement to publish an approved prospectus have remained unaltered. In addition, the exemptions to have a prospectus available compliant with the Prospectus Regulation have largely remained the same. The chapter shows, however, that there have been some changes when it comes to exemptions. Notably, the regime for small size offerings has changed. The chapter concludes that the goal of the European legislator to enhance harmonisation between the member states by including the prospectus regime in a regulation, has not been achieved for these small-size offerings. In addition, some exemptions for the prospectus requirement in the event of a listing have either been extended or restricted. Finally, the chapter notes that the disclosure regime as such, as is provided by a prospectus under the Prospectus Regulation, has not been truly reconsidered, in the context also of concurrence with other disclosure regimes.
Part III Regulating the Crowdfunding Service Providers Under the Crowdfunding Regulation, 8 Organizational and Operational Requirements for Crowdfunding Service Providers »
Kitty Lieverse, Wendy PronkFrom: The EU Crowdfunding Regulation
Edited By: Pietro Ortolani, Marije Louisse
This chapter analyses the organisational and operational requirements for crowdfunding service providers (CSPs) under the Crowdfunding Regulation. These requirements are in follow up to the authorisation requirements that the CSPs have to meet in order to obtain market access. CSPs should comply with certain requirements designed to ensure that projects on their platforms are selected in a professional, fair, and transparent way, and that crowdfunding services are provided in the same manner. The chapter then discusses the governance arrangements that CSPs should have in place to ensure their effective and prudent management, including the prevention of conflicts of interest. It also assesses the prudential requirements that are applicable in order to protect clients against operational risks and the rules in respect of outsourcing.
Part VI Leveraging Banking Capacity to Support the Wider Economy, 20 Relief from Prudential Requirements to Support the Capital Markets Union »
Bart Joosen, Kitty LieverseFrom: Capital Markets Union in Europe
Edited By: Danny Busch, Emilios Avgouleas, Guido Ferrarini
This chapter examines the regulatory impediments to financing by European banks of corporate borrowers and the means to improve the financing capability of banks. In this context, it not only looks at banks, but also considers the position of another type of a highly regulated funder: European insurance companies. The working assumption is that capital requirements, and risk weights for credit risks in particular, have an impact on the capability of banks to lend. Quite simply, a higher risk weight of an exposure increases the capital a bank needs to maintain in connection with such exposure. As a result, increases in capital requirements will potentially constrain the lending capability of a bank.
Kitty LieverseFrom: Regulation of the EU Financial Markets: MiFID II and MiFIR
Edited By: Danny Busch, Guido Ferrarini
In this chapter the main changes to the scope of MiFID in MiFID II are listed and discussed. MiFID II changes the scope of the supervision of investment firms and business related to this industry. The revision and—in some cases—extension of the definition of ‘financial instrument’ affects the scope of MiFID II supervision. Advisory and distribution services for structured deposits by investment firms and credit institutions have been brought within the scope of MiFID II. The scope of some exemptions to MiFID II has been revised. The broader scope of MiFID II has an effect beyond the applicability of MiFID II regulation: the prudential requirements are as a starting point linked to the MiFID II qualification, although with specific exemptions. Linking prudential supervision to the MiFID II qualification, rather than to the prudential risk profile of the underlying services and activities, is subject to review and reconsideration.