EU Financial Regulation 2025-2029: Key Reviews and Future Trends in Banking, Insurance, and Asset Management

As the European Commission gears up for its next mandate, financial regulation remains both a challenge and an opportunity. The balance between streamlining and safeguarding financial stability is set to shape the sector's future from 2025 to 2029.

The European Commission is expected to begin its new mandate as early as November 1, 2024 running through 2029, with a supposedly more focused and pragmatic approach towards regulation. The overarching objective of the European Commission aims to reduce, streamline, and simplify European Directives and Regulations. Valdis Dombrovskis has been proposed to become commissioner for implementing and simplifying the EU texts; he will be reporting directly to the Commission’s President until 2029. However, these objectives seem counter-intuitive, considering the inherent regulatory nature of the European Commission.

Nevertheless, Brussels Regulation reviewed the European Directives and Regulations for financial services, and it appears regulatory work will continue. This is obvious since some texts contains review clause for example. These will have to be reviewed, reopened, and therefore renegotiated between the Parliament and Member States whether the Commission already announced it or not. We particularly focus on financial services to get a sense of what lies ahead for the sector in the coming years.

Banking

Mortgage Credit Directive (MCD)

We expect this review to address market trends driven by technological developments with emerging new players and products in the mortgage market. As of today, no clear date has been made public, but the review could follow once the new Commission starts in January 2025, modulo the Commissioner for Finance’s expectation and mission letter.