Application of the Host Member State Control Principal under the Law of the European Union

• Main Author: M. P. Lukinskaya
• Format: Article
• Language: English
• Published: Moscow State Institute of International Relations (MGIMO) 2011-06-01
• Series: Московский журнал международного права
• Subjects: host member state; home country; financial services; professional client; prudential control
• Online Access: https://www.mjil.ru/jour/article/view/584

The article reviews place and role in the finance law of the European Union of the host member state control principle related to operations of credit and financial institutions in EU, as well as it discovers sources and legal grounds for such principle. The emphasis is given by the author to the analysis of the Directive in relation to the main powers of the host member state. The article examines specifics of the host member state, the home country and the professional client concepts. Additionally types, varieties and content of host member state control regulations for companies rendering financial services are being observed. The author hereby addresses range of problems arising out of absence of distinct separation and duplication of control powers between the home and the host EU countries. The article characterizes the role of the Court of Justice of the European Union in affirmation of the host member state control principle in the European finance law. Therewith the article reviews the case-law of the Court of Justice of the European Union which has great impact on formation and development of the host member state control concept. The article is being finalized by analyses of the current control strategy over capital movement in the European Union.