Recent months saw significant movement towards the EU’s Banking Union, with the European Parliament (EP) adopting the Single Supervisory Mechanism (SSM) legislation, assisted by the Inter-Institutional Agreement. The Agreement gives the EP far-reaching access to information, including the Supervisory Board’s minutes and was needed for the EP to be happy about the democratic accountability of the European Central Bank (ECB). However, the Council has yet to formally adopt the text and the lack of a legal base is beginning to create some impediments to the ECB’s preparatory work. That said, the ECB has made progress on developing its supervisory rule book, and in preparations for the asset quality review of Eurozone banks that it needs to undertake before the EBA 2014 stress tests and before it assumes supervisory responsibility. In other news:
Our feature article this month focuses on one of the texts still to be agreed by EP and the Council: the second iteration of the Markets in Financial Instruments Directive (MiFID II). The debate around what should (and should not) be included in MiFID II has been long and hard-fought. Our feature analyses these issues in more detail as well as setting out the likely timetable for agreement.