EU tightens rules on investment firms with ‘bank-like services’
Brussels — EU governments and MPs have reached a deal on tighter supervision of investment firms that offer “bank-like services”, including proprietary trading and underwriting of financial instruments. The deal, reached late on Tuesday and which confirms an agreement in January by EU states, will boost the European Commission’s powers in overseeing foreign financial firms operating in the EU, giving Brussels more clout over London-based financial firms after Britain leaves the EU. The overhaul also imposes stricter liquidity and capital requirements to large EU investment firms, tightening an initial proposal put forward by the European Commission in December 2017. “The agreement further strengthens the equivalence regime that would apply to third-country investment firms,” the EU said in a statement, adding that more powers would be given to the commission to assess whether foreign rules are compatible with EU regulations. More than half of the 6,000 European investment firms, inc...
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