- Regulation of banks — Investment business
This chapter provides a cross-sectoral analysis of the fit and proper requirements applicable to the different types of financial institutions which are the subject of EU financial regulation, such as credit institutions, investment firms, pension funds, and insurance undertakings. These requirements differ substantially across the different sectors. High standards — laid down in the Capital Requirements Directive (CRD IV) and Markets in Financial Instruments Directive (MiFID II) — were not followed up upon by EU rules in other sectors. Against this backdrop, the chapter poses the question whether these differences can be adequately explained or whether more cross-sectoral harmonisation is actually needed. Ultimately, fit and proper requirements in several sectors should be enhanced, taking into account the proportionality principle. This should lead to more cross-sectoral harmonisation, following the example of the Netherlands.