Today's Coming Crisis Movie

Monday, July 9, 2012

"Rushed" European Commission proposals in response to the financial crisis could be "hugely damaging" to the City of London

"Rushed" European Commission proposals in response to the financial crisis could be "hugely damaging" to the City of London, a House of Lords committee has warned.

Crucial elements of the Markets in Financial Instruments Directive (MiFID II) risk creating unnecessary red tape, excluding American and Chinese companies from key markets and reducing competition and innovation in the financial sector, said the Lords Economic and Financial Affairs EU Sub-Committee.

In a report, the committee called on the UK Government to play an active part in negotiations with the Commission, the European Council and the European Parliament to amend the proposed regulations.

MiFID II is due for implementation in 2015 and will affect a wide range of services, from global investment banks trading complex securities to fund managers investing pension funds, stock-broking firms and small high street financial advisers providing financial advice to the general public.

It aims to update the earlier MiFID I regulatory package to take account of changes since it came into effect in 2007, including developments in technology and the fallout from the financial crisis of 2008.

A consultation was launched in December 2010 and the UK Government responded last year, but the new report warned that more time was needed to consider the potential impact of the new directive. Read More