Council of EU adopts conclusions on simplifying EU financial services regulation

The Council of the EU has adopted conclusions on simplifying the EU's financial services regulation as part of its broader competitiveness agenda. The Council emphasises that simplification should reduce unnecessary complexity and administrative burdens, particularly for SMEs, without undermining financial stability or core regulatory pillars such as capital requirements, consumer protection, and anti-money laundering frameworks. Key principles include eliminating duplicative or outdated provisions, improving coherence across legislation, streamlining reporting requirements, and ensuring robust stakeholder consultation and impact assessments.

The Council calls on the European Commission (EC) to swiftly propose ambitious simplification packages, review existing legislation and explore technological tools like AI to enhance efficiency. It also urges better coordination among EU institutions and supervisory authorities, including the European Supervisory Authorities and the EU's Anti-Money Laundering Authority, and calls on them to adopt a simpler and more targeted approach to developing regulatory technical standards, implementing technical standards, guidelines, etc. The EC is invited to report back on progress with simplification initiatives, including preparing a report, scheduled for 2026, assessing the overall state of the banking system in the Single Market and evaluating its competitiveness.

Return to main website.