Regulatory Discretion in Financial Markets Law: An Effective Remedy Against Financial Crises?

Abstract

This article discusses the regulatory discretion of competent national authorities as a mechanism to prevent financial crises, on the example of investment funds and their managers. The ability to impose stricter conditions on fund managers and define the procedures for efficient intervention allows responding efficiently to the financial shocks. Whilst EU law cannot respond quickly enough to the changes in financial markets, Member States and their respective regulatory authorities can provide for a tailor-made approach for each fund and its manager registered within their territories. AIFMD, financial markets authorities, investment funds (managers), MiFID II