EC Securities Regulation, A Single Regime for an Integrated Securities Market: Harmonized We Stand, Harmonized We Fail?

Journal of International Banking Law and Regulation, Part 1 & Part 2, Vol. 22, pp. 79-87, pp. 153-164, 2007

10 Pages Posted: 5 Apr 2009

See all articles by Emilios Avgouleas

Emilios Avgouleas

University of Edinburgh - School of Law

Date Written: April 4, 2007

Abstract

EC securities regulation has been one of the cornerstones of all policy initiatives aiming at the integration of EU financial markets. Yet the development of this body of EC law has been a very lengthy process frequently marred by controversy. Arguably, a marked lack of direction has been its most distinctive characteristic for almost two decades. This was caused by three factors. The first factor was the existence of conflicting national agendas motivated by a desire to protect and preserve domestic investment firms, national securities markets, and local business customs. The second factor was the unwillingness of the global financial services industry to engage in a constructive dialogue and find a common language with EU legislators. The third factor was the inability of EU officials and legislators to fully understand the intricacies of modern financial markets and in particular their global nature and the fast pace of innovation within them. This resulted in the production of legislation that often reflected the reserve, awe, and prejudice with which EC bodies used to view the workings of global finance. A good number of these dysfunctions have been addressed by the European Union's Action Plan for Financial Services (FSAP) and the introduction of the Lamfalussy process. EC legislation passed in the context of FSAP, departs radically from the principle of minimum harmonization and creates self-standing Pan-European regulatory regimes in a number of areas, most notably in the areas of market abuse, investment firm-retail customer relations, operation of licensed financial exchanges and of Alternative Trading Systems (ATS). Furthermore, FSAP legislation upgrades the EC legal framework that governs the regulation and supervision of investment firms and the public offer of securities and their admission to trading on securities exchanges. This article provides a critical overview of FSAP Securities Regulation Directives and highlights the challenges their implementation has created.

Suggested Citation

Avgouleas, Emilios, EC Securities Regulation, A Single Regime for an Integrated Securities Market: Harmonized We Stand, Harmonized We Fail? (April 4, 2007). Journal of International Banking Law and Regulation, Part 1 & Part 2, Vol. 22, pp. 79-87, pp. 153-164, 2007, Available at SSRN: https://ssrn.com/abstract=1373182

Emilios Avgouleas (Contact Author)

University of Edinburgh - School of Law ( email )

Old College
South Bridge
Edinburgh, EH8 9YL
United Kingdom

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