Home state regulation
Encyclopedia
Home state regulation is a term used in European Union
law relating to the cross border selling or marketing of goods and services.
In a directive
, or regulation
, where home state regulation applies, if a firm based in country A is selling into customers living in country B, they are regulated according to the laws of country A. In turn, country B has to accept that the laws of country A are sufficient under the principal of mutual recognition.
Home state regulation is often held to help the single market, as firms only need to be aware of their own country's laws, rather than 25 sets of national law.
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
law relating to the cross border selling or marketing of goods and services.
In a directive
European Union directive
A directive is a legislative act of the European Union, which requires member states to achieve a particular result without dictating the means of achieving that result. It can be distinguished from regulations which are self-executing and do not require any implementing measures. Directives...
, or regulation
European Union regulation
A regulation is a legislative act of the European Union that becomes immediately enforceable as law in all member states simultaneously. Regulations can be distinguished from directives which, at least in principle, need to be transposed into national law...
, where home state regulation applies, if a firm based in country A is selling into customers living in country B, they are regulated according to the laws of country A. In turn, country B has to accept that the laws of country A are sufficient under the principal of mutual recognition.
Home state regulation is often held to help the single market, as firms only need to be aware of their own country's laws, rather than 25 sets of national law.
See also
- European Union lawEuropean Union lawEuropean Union law is a body of treaties and legislation, such as Regulations and Directives, which have direct effect or indirect effect on the laws of European Union member states. The three sources of European Union law are primary law, secondary law and supplementary law...
- Host state regulationHost state regulationHost state regulation is a term used in European Community law relating to the cross border selling or marketing of goods and services.In a directive, or regulation, where host state regulation applies, if a firm based in country A is selling into customers living in country B, they are regulated...