The evolution of legal foundations for financial services regulation in the European Union: challenges and prospects

This article analyzes the development of the legal framework for regulating the financial services market in the European Union (EU), focusing on key challenges and prospects for improving the legal basis. The relevance of the topic is driven by rapid changes in the global economy and financial sector, necessitating the adaptation of legal mechanisms to contemporary challenges. Particular attention is given to the impacts of global financial crises, the introduction of digital technologies in financial services, and the growing role of European institutions in regulating financial markets. The study aims to identify key trends in the development of legal regulation of financial services in the EU, analyze problematic issues, and provide recommendations for improving legislation. The methods of analysis, synthesis, comparative law, and a systematic approach are employed to comprehensively study legal acts, doctrinal sources, and practical aspects of the functioning of the European financial market. The research shows that the evolution of legal regulation of financial services in the EU aims to ensure market stability, transparency, and efficiency. Identified key challenges include insufficient harmonization of national legislation, technological changes, and cybersecurity. The conclusions offer specific recommendations for integrating regulatory acts, enhancing the regulation of financial technologies, and improving supervisory mechanisms.