Prudential Supervision of Investment Firms (Directive)

In cep’s view, full harmonisation of the provisions on initial capital, with which investment firms have to comply, may reduce distortions of competition. However, graded regulation, by its very nature, harbours the risk of such distortions. cep also criticises the fact that regulating the remuneration of “main players” in investment firms constitutes a major intervention in the freedom of contract which also puts European investment firms at a disadvantage in the competition for qualified staff.