Last Updated on June 10, 2025 by Arnaud Collignon
Understanding Regulation (EU) 2019/1156
On June 20, 2019, the European Parliament and the Council adopted Regulation (EU) 2019/1156, which aims to enhance the effectiveness of the European Union’s financial markets. This regulation is a crucial step towards ensuring transparency and stability within the financial sector.
Key Objectives of the Regulation
- Enhancing Transparency: The regulation seeks to improve the transparency of financial markets by establishing clear rules for the disclosure of information.
- Strengthening Investor Protection: It aims to protect investors by ensuring that they have access to relevant information before making investment decisions.
- Promoting Market Integrity: The regulation is designed to prevent market abuse and ensure fair trading practices.
Important Provisions
Regulation (EU) 2019/1156 introduces several important provisions, including:
- Disclosure Requirements: Financial institutions must provide detailed information about their products and services.
- Reporting Obligations: Entities are required to report transactions to enhance market surveillance.
- Cooperation Among Authorities: The regulation encourages cooperation between national authorities to ensure effective enforcement.
Impact on Financial Institutions
Financial institutions operating within the EU must adapt to the new regulatory landscape. Compliance with these regulations is essential for maintaining trust and integrity in the financial markets.
Conclusion
Regulation (EU) 2019/1156 represents a significant advancement in the EU’s efforts to create a more transparent and secure financial environment. By adhering to these regulations, financial institutions can contribute to a more stable market and protect the interests of investors.