The European Commission has on August 1, 2016 issued a public
consultation document in preparation for the Review of the EU
Macro-Prudential framework. The aim of the consultation is for the
EU to gather feedback and evidence on the functioning of the
different building blocks of the macro-prudential framework and to
gather evidence and stakeholder feedback to analyse possible
The macro-prudential framework is to ensure the stability of the
financial system as a whole and to allow the EU Member states to
address specific financial stability risks. The current complex
macro-prudential framework has evolved over recent years, and this
piece-meal approach has created a number of weaknesses in the
framework. There is currently an over-lapping toolset of
macro-prudential instruments available under EU legislation. The
framework is currently made up of 5 separate pieces of legislation
Two European Systemic Risk Board
The Capital Requirements Directive IV
The Capital Requirements Regulation
(CRR) and; and
The Single Supervisory Mechanism
The EU aims at addressing all the above five component parts in
a comprehensive review to eliminate any possible inconsistencies.
The EU will be reviewing not only the appropriateness of the design
of the individual macro-prudential instruments and institutions but
also taking into consideration how these different elements
The consultation includes a broad range of questions on
narrowing and refining the scope of existing macro-prudential
instruments (such as capital buffers), making the rules more
consistent with one another, as well as examining the role and
organisational structure of the ESRB and its relationship with the
European Central Bank.
The consultation is open to the public including members of the
industry, banks, trade bodies, interested academics as well as
consumer organisations. The consultation will run from August 1,
2016 and October 26, 2016.
With effect from 18 April Jersey is introducing a new regime in respect of private funds - simplifying the regulatory regime, and extending the benefits of flexibility and speed across Jersey's private funds space.
The Hedge Fund Law Report recently interviewed Woolverton in connection with his move to DMS, during which he discussed the role of robust fund governance in the context of private funds.
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