Since the 2008 financial crisis, there has been a pronounced shift towards concentration of power and influence at the EU level, away from the regulators in individual member states. In addition, new laws and initiatives at the EU level have tightened regulation of investment banking activities and the securities and derivatives markets.
Until recently, most EU financial laws were effected through directives, which are not directly applicable and must be implemented into the national law of EU member states. Following the crisis, the primary vehicle for financial services rulemaking has been the EU regulation. Such regulations are directly applicable without the need for transposition into national law. As a consequence, the scope for member state discretion in setting and interpreting key regulation has been reduced.
Following a number of years in which successive eurozone banking crises dominated the attention of market participants and regulators, Brexit is now a key factor in the development of new legislation and regulation.