What is being negotiated?

Financial services play a key role in the efficient functioning of the internal market of the European Union, which represents one of the foundations of European integration. This negotiating chapter covers regulations in the areas of banking, insurance, financial market infrastructure, securities markets, and investment services. The acquis contained in this chapter includes rules for the authorisation, operation, and supervision of financial institutions and regulated markets. In addition, it regulates issues relating to the protection of users of financial services, as well as modalities of cooperation between financial market supervisory authorities. The objective of EU policy in the field of financial services is to ensure a high level of stability, security, and efficiency of the financial system, while providing adequate protection for consumers, investors, and policyholders.

Sub-areas

This chapter covers four key areas:

• Banking and financial conglomerates

• Insurance and occupational pensions

• Financial market infrastructure

• Securities markets and investment services

When was the chapter opened?

Chapter 9 – Financial Services was officially opened on 22 June 2015, during the Intergovernmental Conference held in Luxembourg.

Closing benchmarks

In Chapter 9, the European Commission has defined five closing benchmarks:

1. Montenegro demonstrates an advanced level of alignment with EU legislation in the field of banking and financial conglomerates, particularly with regard to capital requirements, supervision of financial conglomerates, deposit protection, reorganisation and winding-up of credit institutions, and demonstrates readiness to implement the acquis as of the date of accession.

2. Montenegro demonstrates an advanced level of alignment with EU legislation in the field of insurance and occupational pensions, particularly with regard to life insurance, reinsurance, insurance mediation, motor third-party liability insurance, the Solvency II Directive and the IORP Directive, and demonstrates readiness to implement the acquis as of the date of accession.

3. Montenegro demonstrates an advanced level of alignment with EU legislation in the field of financial market infrastructure, particularly with regard to settlement finality and financial collateral arrangements, and demonstrates that it will be ready to implement the acquis as of the date of accession.

4. Montenegro demonstrates an advanced level of alignment with EU legislation in the field of securities markets and investment services, particularly with regard to the Markets in Financial Instruments Directive (MiFID), prospectuses, transparency, and market abuse, and demonstrates that it will be ready to implement the acquis as of the date of accession.

5. Montenegro demonstrates the stability and independence of regulatory and supervisory institutions, with adequate administrative capacity to apply and enforce the acquis in the field of financial services as of the date of accession.

What are the benefits of this chapter for Montenegro?

EU membership will bring significant benefits to all participants in Montenegro’s financial market—citizens, entrepreneurs, investors, and other users of financial services. Alignment with the EU acquis in the field of financial services contributes to strengthening the financial system through increased competition, innovation, and expansion of the range of modern financial products and services, both in the banking and non-banking sectors.

The introduction of a single deposit guarantee scheme ensures greater protection for depositors, strengthens confidence in the banking sector, and promotes the stability of the entire financial system. Furthermore, by defining a more modern and sustainable pension system, including employer-sponsored pension schemes, employees are provided with access to supplementary pension income, representing an important step toward the long-term financial security of citizens.

Although the protection of users of financial services remains an important segment, the focus has shifted toward creating a more favourable environment for the development of the financial market and the sustainability of the system as a whole.