Understanding Changing EU Financial Regulations

By Maya Heins Published on Apr. 16, 2019

The 2008 financial crisis resulted in various wide-ranging and long-lasting effects on international financial systems. In the aftermath of the crisis, many societies decided to implement a range of regulatory and legislative changes to try and address the underlying causes of the crisis and prevent another one from happening. 

Even though it has been over ten years since the onset of the crisis, we are still being impacted in real time by new developments and reactions to the events of 2008. The debate continues on how best to prevent another disaster from happening, as governments and companies work to create more sustainable domestic and international financial systems. Although different regions in the world are responding according to their own approaches, the European Union (EU) has chosen to respond by creating and implementing stronger financial regulations. Over the past few years, the EU has seen several monumental regulatory frameworks begin to come into full effect. As organizations react to these innovations and adjust to the new rules that define compliance, it can be difficult for individuals to know where to start when trying to understand what is going on in the EU’s changing financial landscape. 

GDPR, PSD2 and MiFID I/II: A good starting point

One good place to begin is with the GDPR, PSD2, and MiFID I/II regulations. These three acronyms are shorthand for some of the most important regulatory changes in modern European financial history. In essence, they are pretty much relevant to everyone who is in some way, shape, or form taking part in the financial system in Europe. 

  • GDPR, or the General Data Protection Regulation, is a legislative system that guides how data collection and processing is handled by organizations for individuals residing in the EU. 
  • PSD2, or the second Revised Payment Services Directive, creates a more competitive European financial ecosystem by forcing banks to share their data with qualified third parties, fostering the beginnings of an Open Banking system in Europe. 
  • MiFID I/II, or the first and second Markets in Financial Instruments Directive, is an incredibly complex set of regulations that attempt to increase transparency in financial markets, through new standards in reporting and disclosure of trading transactions. 

Everything you need to know about EU financial regulation

EU financial regulations have gotten an intricate legislative facelift. Understanding at least the basic framework of these regulations and what they cover can help you do your job better, regardless of which industry you work in.

The following three-part series on the GDPR, PSD2, and MiFID I/II regulations will give you a succinct, in-depth explanation and guide to what each of the three different regulatory frameworks are made up of, what the current status is of the regulation, and who is affected. 

You will also find a short look into what different solutions exist to help the smooth transition of these regulations as they come into effect. While the articles do not go into explicit detail into the various complexities and intricacies of these regulations, it is a basic introduction into understanding the changing environment that is EU financial regulation. 

The complexity of GDPR, PSD2 and MiFID I/II can make the task of trying to understand them daunting. However, having at least a general idea about what they do and the future implications that they will have on the European financial markets is key to having a competitive advantage in your industry.  Looking for a comprehensive summary of Europe’s changing financial regulatory landscape? You’ve come to the right place!

Read the rest of the collection.

GDPR, PSD2 and MiFID I/II: A good starting point for everyone in the financial system in Europe

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