PwC Legal’s EU Regulatory Compliance Operations, Risk and Engagement (EU RegCORE) centre

Dedicated support for the EU’s Single Rulebook and European System of Financial Supervision

For new or existing market participants operating in or from the EU-27 as well as the Eurozone, the pace and depth of Europeanisation and supervisory engagement poses a challenge, especially since rulemaking and supervision of financial services is now led by EU authorities rather than at the national level.

The European System of Financial Supervision (ESFS) is a multi-layered system of micro- and macro-prudential as well as conduct authorities that, collectively aim, to ensure consistent and coherent financial supervision in the EU through the EU’s Single Rulebook. The ESFS includes the European Systemic Risk Board (ESRB), the three European supervisory authorities (EBA, ESMA and EIOPA) and the national supervisors. The ESFS has continuously evolved to take account of the changing context in which it operates. Notably the introduction of the Banking Union and the powers of the European Central Bank and national competent authorities participating in the two existing pillars i.e., the Single Supervisory Mechanism (SSM) as well as the Single Resolution Board and the national resolution authorities (SRM) participating in the Single Resolution Mechanism have changed the way the ESFS operates. Further centralisation, expansion of powers and thus Europeanisation of EU level authorities taking a lead supervision role are being advanced partly due to the EU’s efforts to build a Capital Markets Union as well as proposals for an Insurance Union as well as more fundamentally as a result of a growing Single Rulebook.

The EU’s Single Rulebook for financial services is a backbone for EU financial sector regulation in the EU in general and equally for completion of the EU’s Single Market. It consists of legal acts and regulatory rulemaking instruments plus supervisory guidance that all financial institutions operating in the EU must comply with. The Single Rulebook is also supplemented by the EU-level authorities efforts in building a common Single Supervisory Culture and thus a common, often more intrusive tone of supervision.

Our EU RegCORE assists clients in navigating challenges and seizing opportunities in this new dynamic of rulemaking, supervision and monetary policy. In combining the EU RegCORE’s dedicated and specialist coverage of the EU bodies together with the extensive local market insights and specialist expertise across the PwC Legal and PwC network, clients can take a holistic pan-European view on their regulatory compliance, their operational issues, their risks and their threats from supervisory engagement.

Our brochure and video set out further detail on how our Frankfurt-based EU RegCORE, together with the wider Financial Institutions Regulatory Europe (FIRE) Team can empower your business by bringing together our local-market insight and capabilities with EU-27 and Eurozone regulatory, monetary policy and transaction experience.

Regulatory Monitoring for financial services firms

Financial services firms are facing an era of unprecedented regulatory scrutiny. This leads to the fact that they operate in an increasingly complex legal and regulatory environment. The complexity is compounded by multiple and often competing requirements set out in rules or supervisory expectations. These may also differ by market sector, asset class, jurisdiction as well as the type of regulated activity. Equally, these rules are set by different global, regional, and national competent authorities.

Rule Scanner is a lawyer-led, AI-powered global legal and regulatory horizon scanning and risk mapping solution. Our Horizon Scanning solution takes an integrated, enterprise-wide approach to analysis – notably, legal, regulatory governance, and reputational risks presented in a visual format (Dashboarding). Where relevant, benchmarking is carried out against supervisory enforcement notices and sanctions available in the “Fines Database”.

Recent Thought Leadership from our EU RegCORE

Find out more about specific thematic areas and all our Thought Leadership Material from our EU RegCORE and from across the PwC Network: