In relation to the financial services industry, which one of the following statements regarding the...

The EU and Financial Services

The European Union’s goal is to establish a single market where financial services, goods, and capital can move freely between member states.

This involves harmonizing laws and regulations across countries to reduce barriers to trade and investment.

Why the Other Options are Incorrect

A. Single regulator: The EU has no single financial regulator; financial regulation is shared across bodies like ESMA and EBA.

C. Power of veto: The EU does not override national regulators; instead, it ensures compliance with its directives.

D. ECB and systemic risk: The ECB handles systemic risk in the Eurozone but not for the entire EU, especially countries outside the Eurozone.

ICWIM Study Guide, Chapter on Global Financial Markets: Covers the EU’s role in creating a single market.

EU Financial Directives: MiFID and others promote cross-border market access.

ReferencesThus, the correct answer is B. It aims to bring about a single market.