Part V The Broader View and the Future of MiFID, 21 MiFID II In Relation to Other Investor Protection Regulation: Picking Up The Crumbs of a Piecemeal Approach

The study of the interaction between different pieces of EU financial legislation becomes ever more important—and difficult. In this contribution the author clarifies the relationship between the MiFID II and several other closely related directives, such as the Insurance Distribution Directive, the PRIIPs Directive and the UCITS Directive. The analysis reveals numerous inconsistencies and interpretation difficulties. The author argues that while some of the shortcomings are inherent to the EU piecemeal approach, other problems should and could have been avoided, by adopting a holistic approach of financial regulation and supervision.

1 Recovery and Resolution Planning: Reconfiguring Financial Regulation and Supervision

This chapter analyses the impact of recovery and resolution planning on the regulation and supervision of financial institutions. It argues that recovery and resolution planning places issues associated with crisis prevention and resolvability at the forefront of regulation and supervision rather than at the tail end. However, one challenge associated with this requirement is the level of discretion authorities have with regards to the technical requirements associated with formulating and reviewing the plans. The chapter explores the extent to which that discretion is structured and assisted by the introduction of European Banking Authority guidelines and technical standards. It concludes with a reflection of how recovery and resolution planning is likely to improve forward-looking risk-based supervision.