Laws and Regulations

The European Commission has pledged to simplify regulations for sustainable funds this year. Frédéric Vonner, sustainability expert at PwC Luxembourg, hopes that transition investments will gain more recognition in the process.

The European Commission has set out yet another grand vision for Europe’s capital markets. Behind the lofty rhetoric, the plan leaves a familiar set of unresolved questions.

European stock exchanges are becoming increasingly reliant on selling market data to offset declining trading revenues, a trend that industry experts warn could hinder market growth and innovation.

Europe’s financial watchdogs are setting their sights on non-bank financial institutions (NBFIs), a sector that has grown increasingly prominent as an alternative to traditional banks in providing credit.

The Pan-European Pension Product (PEPP) has struggled to gain traction since its 2022 launch, but proposed reforms under “PEPP 2.0” could create significant opportunities for Luxembourg’s fund and asset management industry.

The European Union is preparing its next wave of financial sector reforms, and 2025 could mark a turning point.

ESG factors are playing an increasingly diminished role in the investment decisions of institutional parties. For the vast majority, short-term performance takes precedence over the long-term benefits of sustainable investing.

Although no progress has been made this year towards a European Capital Markets Union, William De Vijlder, former Chief Economist at BNP Paribas, remains cautiously optimistic about building a stronger financial Europe. According to him, four groundbreaking reports from the past year point the way forward.

Donald Trump’s re-election has derailed the proposed stricter Basel III regulations for banks, threatening their implementation for both U.S. and European institutions.

The regulatory divide for crypto investors between the US and Europe is set to widen further.