Research note. Contract Governance in the EU: Conceptualising the Relationship between Investor Protection Regulation and Private Law

Abstract by Olha Cherednychenko

The instrumental use of private law, in particular contract law, by the EU raises a complex issue concerning the relationship between contract-related regulation and traditional private law and underlines the need for conceptualising the interplay between the two from the contract governance perspective. The present article aims to apply this new analytical approach in the investment services field where there is considerable tension between the EU investor protection regulation embodied in the Markets in Financial Instruments Directive (MiFID I and MiFID II) and national private laws. The article explores various models of relationship between investor protection regulation and traditional private law within a multi-level EU legal order, considering the strengths and weaknesses of each field in pursuing public and private interests involved in financial contracting. This analysis also offers some lessons for the broader narrative of how European integration in regulated areas dominated by public supervision and enforcement could proceed.



Olha O. Cherednychenko is Associate Professor at the University of Groningen (the Netherlands) where she holds the Chair in European Private Law and Comparative Law. She is also a Founder and Director of the Groningen Centre for European Financial Services Law (GCEFSL).