The cumulative impact of EU financial services regulation: better regulation for jobs and growth report follows the EU Commission’s call for evidence on the EU regulatory framework for financial services earlier this year.
This report, produced by the International Regulatory Strategy Group (IRSG), the group co-sponsored by TheCityUK and the City of London Corporation, and in association with Mayer Brown, considers how some of the issues the IRSG identified in its response to the consultation could be avoided or minimised going forward and applied to ongoing and future initiatives.
If implemented, the recommendations made in the report could make financial services in the EU more competitive, cost effective and help to deliver better returns for customers. The recommendations fall into three categories:
Principles for better regulation:
- Adoption of a regulatory code
- Adoption of framework principles on exterritorial effect and the equivalence process, proportionally/diversity, the legislative timetable and consistency with international standards and other international approaches
- Better regulation guidelines and evidence that these were considered
- Consideration of additional sub-questions for financial services impact assessments
- Production of revised impact assessment reports at key stages of the legislative process
- Introduction of dynamic deadlines to deal with timetabling issues
- Inclusion of specified and clearly defined powers for the ESAs in EU legislation
- Development of a mechanism for National Competent Authorities to address issues restricted to one local market
This report forms part of TheCityUK’s and the IRSG’s work programme on Capital Markets Union and Better Regulation and complements work being done elsewhere.
The IRSG would like to thank Alexandria Carr and Mayer Brown for their work on this project and all those who gave up their time to discuss the content during its preparation.