Commission de-prioritising certain non-essential Level 2 acts in financial services legislationThe Commission, in line with its broader simplification agenda, has informed the European Supervisory Authorities and the Anti-Money laundering Authority (AMLA) of its plan to deprioritise 115 non essential Level 2 acts. The EU has a comprehensive legal framework, in which many of the rules are regulatory and implementing standards (Level 2) that supplement or specify the EU Regulations and Directives (Level 1). In the last legislature (2019-2024), the European Parliament and the Council (co-legislators) revised or adopted around 30 Level 1 acts concerning financial services. These acts empower the Commission to adopt around 430 level 2 measures.A high volume of level 2 acts can lead to compliance costs and regulatory complexity for stakeholders, while demanding significant resources from co-legislators to scrutinise them. In consultation with the EU co-legislators, the Commission informed the three European Supervisory Authorities and AMLA that it will not adopt these non-essential acts before 1 October 2027. Where empowerments have legal deadlines, the Commission will propose to amend or repeal them during the upcoming revisions of the relevant Level 1 acts. The Commission’s deprioritisation of some level 2 measures is a pragmatic approach that can deliver simpler rules and more effective and efficient implementation, in line with the savings and investments union objectives and the Commission’s simplification agenda. |
