The last two weeks has seen continued work by the European Parliament (EP) on Capital Markets Union and Retail Financial Services. The new General Data Protection Regulation has also now been published setting the date for implementation by member states of 28th May 2018. A substantial amount of work is now needed to ensure that regulators agree with the information industry on the interpretation and implementation of the regulations. Finally it is interesting to see the European Banking Authority issue a discussion document this week on innovative uses of consumer data by financial institutions. A forward looking piece of work for a change from a regulator and one that will no doubt raise the subject of ‘Big Data’.
KEY AREAS OF ACTIVITY
- EP ECONOMIC AND MONETARY AFFAIRS COMMITTEE MEETING – Retail Financial Services Green Paper
On Monday 25 April 2016 the European Parliament’s Economic and Monetary Affairs (ECON) Committee had a first exchange of view on the Green Paper on Retail Financial Services.
The Rapporteur that will be in charge of the report is Olle Ludvigsson (S&D, link). Mr Ludvigsson stated that it’s important to create an internal market for Retail Financial Services as the cross border obstacles remain to frequent and to high. He hereby underlined that it’s important to ensure and create a level playing field, retain integrity in the single market, especially between euro and non-euro Member States and to improve financial inclusion for consumers.
o The Draft Report on Retail Financial Services will be discussed in the ECON Committee Meeting of 13/14 June 2016;
o The deadline for tabling amendments to the Draft Report is 28 June 2016, noon;
o The Report will be voted upon during the ECON Committee of September 2016;
o The Report will be voted upon during the European Parliament’s Plenary Meeting of November 2016.
- EP ‘Draft Report on access to finance for SMEs and increasing the diversity of SME funding in a Capital Markets Union’
On Monday 25 April 2016 the European Parliament’s Economic and Monetary Affairs (ECON) Committee discussed the amendments that were tabled to the ‘Draft Report on access to finance for small and medium-sized enterprises (SMEs) and increasing the diversity of SME funding in a Capital Markets Union’.
Rapporteur Othmar Karas (EPP, link) stated that there was a broad support from the Members of the ECON Committee with regard to the draft report. Therefore the amendments to the report will support the content rather than tackling political issues. Mr Karas further stated that the amendments to the report will focus on several issues. A first one is the definition of SMEs and the life cycle of a company (start – ups and other smaller form of companies), taken into account the different regional factors. A second issue that will be amended are the funding opportunities and credit resources for SMEs and additional financial support for start-ups. Mr Karas will discuss with the Shadow Rapporteurs the diversification of credit resources and the different funding opportunities.
o The report will be voted upon in the ECON Committee in June 2016;
o Following the adoption in the ECON Committee, the report will be voted upon during the plenary session of the European Parliament in September 2016.
- GENERAL DATA PROTECTION REGULATION PUBLISHED
As previously reported to the Regulatory Committee the final text of the General Data Protection Regulation (GDPR) was published in the Official Journal of the European Union on Wednesday 4th May 2016. On 25 May 2018 the GDPR will be directly applicable in all EU Member States.
Please find here a link to the text of the GDPR in all official EU languages.
- EUROPEAN BANKING AUTHORITY: Discussion Paper on Innovative Uses of Consumer Data by Financial Institutions.
On Wednesday 4 May the European Banking Authority (EBA) published a Discussion Paper on ‘Innovative Uses of Consumer Data by Financial Institutions’, in line with its mandate to monitor financial innovation. The paper identifies risks and benefits for consumers and financial institutions, as well as for financial integrity in general. Based on the received feedback EBA will decide if any further actions are required to mitigate the risk arising from innovative use of consumer data.
The deadline to respond to the discussion paper is 4 August 2016. BIIA will be working with ACCIS to prepare a response to the discussion paper.
Link to the Discussion Paper.
Neil Munroe is a director of BIIA and a member of the BIIA regulatory committee. He can be reached at: CRS Insights Ltd – e: email@example.com – m: +44 (0) 7710 844518, p: +44 (0) 1923 284604