Directive (EU) 2022/2556

What it is

to amend or clarify certain provisions in existing EU financial services directives. PROPOSED ACT: Directive of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: this proposal is part of the Digital Finance package, a package of measures to further enable and support the potential of digital finance in terms of innovation and competition while mitigating the risks. The digital finance package includes a new Strategy on digital finance for the EU financial sector with the aim to ensure that the Union’s financial services legislation is fit for the digital age, and contributes to a future-ready economy that works for the people, including by enabling the use of innovative technologies. The Union has a stated and confirmed policy interest in developing and promoting the uptake of transformative technologies in the financial sector, including blockchain and distributed ledger technology (DLT). The Committee on Economic and Monetary Affairs adopted the report by Mikuláš PEKSA (Greens/EFA, CZ) on the proposal for a directive of the European Parliament and of the Council amending Directives 2006/43/EC, 2009/65/EC, 2009/138/EU, 2011/61/EU, 2013/36/EU, 2014/65/EU, (EU) 2015/2366 and (EU) 2016/2341. This legislative proposal is part of the Digital Finance Package. It introduces: - targeted changes to existing EU financial services directives to align them with the requirements on network and information systems and ICT risk management and reporting laid down in the DORA Regulation and clarify certain provisions to ensure ICT risks are fully addressed; - targeted changes to the Markets in Financial Instruments Directive (MiFID) to provide legal certainty as regards the definition of crypto assets and to establish a temporary exemption allowing natural persons to participate to the pilot regime for a distributed ledger technology (DLT) Multilateral Trading Facility, under certain conditions. The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows: As the existing provisions of EU law are not fully harmonised, Members stressed the need to avoid over-regulation and to ensure that these provisions are appropriate to the constantly changing reality in this area. It is also a question of ensuring the proper functioning of the internal market while promoting proportionality , especially as regards SMEs, other small financial entities and other micro-enterprises, with a view to reducing compliance costs. Amendment to Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (CRD) The relevant provisions of the CRD have been clarified so that ICT risk is explicitly taken into account. The amendments stipulate that institutions must have robust governance arrangements, including: (i) a clear organisational structure with well-defined, transparent and consistent division of…

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