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3/19/2020

Joint Statement on the U.S.-EU Financial Regulatory Forum | U.S. Department of the Treasury

Joint Statement on the U.S.-EU Financial Regulatory Forum
July 3, 2019

BRUSSELS — U.S. and EU participants in the U.S.-EU Joint Financial Regulatory Forum met on
June 25-26, 2019 in Brussels to exchange views on financial regulatory developments as part of
their ongoing regulatory dialogue.
EU participants included representatives of the European Commission, European Banking
Authority (EBA), European Securities and Markets Authority (ESMA), European Insurance and
Occupational Pensions Authority (EIOPA), European Central Bank (ECB), Single Supervisory
Mechanism (SSM), and Single Resolution Board (SRB).
U.S. participants included o icials from the U.S. Department of the Treasury and sta from
independent regulatory agencies, including: the Board of Governors of the Federal Reserve
System (FRB), Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance
Corporation (FDIC), Securities and Exchange Commission (SEC), and O ice of the Comptroller of
the Currency (OCC). U.S. participants expressed views on issues in their respective areas of
responsibility.
At the meeting, U.S. and EU participants discussed financial supervisory and regulatory
developments and future priorities. They exchanged views on various developments in financial
markets, including potential implications of the UK's withdrawal from the European Union.
In the area of banking, participants discussed implementation of the final Basel III reforms,
recent developments regarding host-country regulation of foreign banks, and resolution
planning for global systemically important banks. For the United States, topics included the
recent U.S. proposal on foreign banking organizations, and the treatment of foreign funds under
the Volcker Rule. For the European Union, topics included elements for the completion of the
Banking Union, including risk reduction and risk sharing.
Regarding capital markets, relevant participants discussed supervision and regulation of crossborder activities, including European Market Infrastructure Regulation 2.2 in the European
Union, potential proposals regarding the CFTC’s derivatives clearing organization regulations,
and the SEC’s proposed cross-border guidance for security-based swap dealers in the United
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3/19/2020

Joint Statement on the U.S.-EU Financial Regulatory Forum | U.S. Department of the Treasury

States. Participants also updated each other on equivalence or exemptions for respective
market players. Participants exchanged views on margin requirements for non-centrally cleared
derivatives, on payments for investment research, and on the transition to new reference rates.
Additional topics included the monitoring of leveraged lending, an update on the EU proposal
for a regulation on taxonomy of environmentally sustainable economic activities and the EU
regulation on sustainability-related disclosures in the financial sector, as well as the
development of payment services in euro. Participants also discussed the implications of the
General Data Protection Regulation for transfers of personal data and registration requirements.
Participants took stock of insurance issues and of ongoing discussions in multilateral fora on
market fragmentation. Also discussed were the e ects of requirements for reporting tax
information related to non-U.S. financial accounts held by U.S. and dual U.S.-EU citizens
resident in the European Union to the United States, and the implications of the U.S. tax reform
on internationally active EU financial institutions.
Given the global nature of financial markets, participants acknowledged the importance of the
Forum in fostering ongoing dialogue between the United States and European Union. A
cooperative approach to the supervision and regulation of financial services should foster
financial stability, investor protection, market integrity, and a level playing field.
Participants will continue to engage on these topics, as well as on other topics of mutual
interest ahead of the next Forum meeting, which is expected to take place in Washington in the
winter of 2019-2020.
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