Regulatory constraints for EU financial institutions crossing borders. Do the rules match modern-day reality?

This article deals with EU financial institutions that cross borders, either by attracting clients in other EU member states or by centralizing functions in the EU or even outside of the EU. Depending on the exact qualification of their activities, these financial institutions may be exposed to foreign regulatory scrutiny or in case of services provided from outside of the EU back into the EU by regulatory scrutiny of their home state regulator/the ECB. This article explains this often complex part of law and tries to distinguish between the various modes of being active abroad. I also provide recommendations on how to update applicable rules and regulatory positions.