COMMUNICATION FROM THE COMMISSION Equivalence in the area of financial services
1. The communication takes stock of the EU’s existing equivalence regime, which is their primary tool for cross-border access for financial services. Equivalence is an acknowledgement from the EU that, in a particular area of Financial Services, the regulatory framework of a third country (i.e. non-EEA) is equivalent to that of the EU. Positive equivalence decisions often provide improved prudential treatment for relevant third countries. In some areas, they can also support the provision of cross-border services and products.
2. The communication sets out the purpose of the EU’s equivalence regime is to support the integrity of EU markets as a risk management tool, explains the key components of the Commission’s decision-making process (assessment, review, monitoring and withdrawal), and presents recent decisions and outlines key priorities for the next year.