Briefing - Capital markets integration and supervision: Master directive - 24-03-2026
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The European Union's competitiveness and prosperity depends on an optimal allocation of resources, particularly savings, within the single market, yet EU capital markets remain fragmented. EU rules are mostly set out through directives, leaving Member StatesBriefing - Capital markets integration and supervision: Master directive - 24-03-2026
The European Union's competitiveness and prosperity depends on an optimal allocation of resources, particularly savings, within the single market, yet EU capital markets remain fragmented. EU rules are mostly set out through directives, leaving Member States' supervisory authorities latitude in their interpretation and application of the rules. Therefore, although rules are enacted at EU level, the resulting uneven supervisory environment is considered a major cause of fragmentation of EU capital markets. EU-level supervision and regulation thus constitute instruments to 'de-fragment' – i.e. 'integrate' – the EU's capital markets. On 4 December 2025, the European Commission issued a package of three proposals to address this situation (the 'market integration package'), as part of its savings and investments union strategy. The proposal to amend three directives – entitled the 'master directive' by the Commission – would primarily aim to enhance and facilitate the supervision of fund management firms operating in several Member States. It would also transfer current provisions in the Directive on markets in financial instruments (MiFID) to the Regulation on markets in financial instruments (MiFIR) in order to ensure their consistent application among Member States. Source : © European Union, 2026 - EP Read more
