The Commission welcomes the political agreement reached today by the European Parliament and Member States on more proportionate and effective prudential rules for investment firms (IFR). This will help to improve investment flows across the EU and delivering better protection for investors.
A key element of the EU's Capital Markets Union (CMU), the revised legislation will ensure more proportionate rules and better supervision for all investment firms on capital, liquidity and other risk management requirements. It should also ensure a level-playing field between large and systemic financial institutions: investment firms which carry out bank-like activities and pose similar risks as banks will be subject to the same rules and supervision as banks. On the other hand, simpler and less risky firms will benefit from a fully revised rulebook more tailored to their business models. As part of the new framework, equivalence rules for the provision of investment services by third country fir
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