Banking structural reform (Regulation)

Bans on proprietary trading and certain trading activities require sufficient justification. This has not been forthcoming either from arguments based on economic theory or from practical experience. The large number of vague definitions and the broad scope given to the Commission and the regulatory authorities to clarify them, creates legal uncertainty. The blanket ban on proprietary trading and on investment in AIFs is in breach of the freedom to conduct a business. The ability of the Commission to exempt banks from individual parts of the Regulation, is incompatible with EU law.