Financial Regulation: Its Objectives and Their Implementation in the European Union

Abstract

On the basis of an analysis of the objectives of financial regulation, this paper analyses the extent to which these principles are implemented in the European Union, considering the specific legal structure of its financial regulation and the implementation by national competent authorities. The resulting landscape is one of considerable diversity and complexity, creating inefficiencies and distortions. The effect of this diversity on the integration of the financial markets should not been underestimated. The European Supervisory Authorities or ESA make serious efforts to reduce the level of diversity, but more in-depth exercises are needed.

JEL Classification: D62, G18, G28