University of Twente Student Theses

Login

What determines discretion in the national application of financial market regulation in the European Union?

Starck, Fiete (2012) What determines discretion in the national application of financial market regulation in the European Union?

[img] PDF
968kB
Abstract:This study answers the question “What determines discretion in the national application of financial market regulation in the European Union?”. The motivation for that lies in explaining parts of the current financial crisis stirring up the European Union and the world. A cross-sectional comparative case study is undertaken, examining three key directives – the MiFID, the Prospectus Directive and the Transparency Directive – from the Financial Services Action Plan that is the foundation for European Union financial services regulation. This examination includes a thorough analysis of the creation and implementation of the directives across the European Union, identifying how much discretionary space they leave for the Member States. On the basis of two different theoretical approaches, this study explains where this discretionary space has its origins. It is found that the fact that MiFID and the Prospectus Directive are rather strict compared to the Transparency Directive covers the precedent preferences of the Member States. This proves bottom-up Europeanization to be correct, instead of principal-agent theory that assumes legislation leaves more discretion the less autonomous the supranational EU authorities are from the Member States. The changes and reforms undertaken to both the legislative and institutional framework of EU financial market regulation do not contribute to a change to this circumstance. Although it altered some of the procedures and assigned a larger set of powers to the supervising EU authority in the securities sector, the Member States are still able to keep the supranational authority on a short leash.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:88 social and public administration
Programme:European Studies BSc (56627)
Link to this item:http://purl.utwente.nl/essays/61676
Export this item as:BibTeX
EndNote
HTML Citation
Reference Manager

 

Repository Staff Only: item control page