Two Renew Europe MEPs, Anouk Van Brug and Billy Kelleher, have asked the European Commission to assess and act on technical advice from EU financial regulators that recommends simplifying the prudential framework for investment firms, warning that current rules are harming EU competitiveness and undermining the Savings and Investments Union (SIU) goals.
The written parliamentary question, submitted on 3 June 2026, cites an October 2025 joint advice from the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) that proposed targeted revisions to the Investment Firms Directive (IFD) and Investment Firms Regulation (IFR). The MEPs argue that the existing regime is more stringent and complex than in other jurisdictions, with extraterritorial impact and lack of proportionality that has already negatively affected EU-based investment firms, including liquidity providers and market makers.
the Commission's assessment of the EBA/ESMA advice; how it plans to integrate the recommendations into its legislative agenda supporting the SIU; and whether it will propose adjustments in the context of an IFD/IFR review to ensure EU-based market makers continue to provide liquidity on European exchanges.
The MEPs are pushing for a more proportionate and competitive regulatory environment for investment firms, particularly those performing strategic capital market functions like market making. They frame the issue as a competitiveness concern that runs counter to the SIU's goal of developing strong, diverse and autonomous capital markets.
The Commission typically has around six weeks to reply. Its answer will signal whether it intends to take up the regulators' advice and propose legislative changes, which would affect EU-based investment firms, market makers, and the broader capital markets ecosystem. The question also touches on the balance between prudential regulation and market competitiveness, with potential impacts on liquidity provision and the attractiveness of EU capital markets versus other jurisdictions.