The implications of the new financial regulatory architecture

Published 06/10/2011

This paper, commissioned by the City of London and the International Regulatory Strategy Group (IRSG) and authored by Charles River Associates, looks at the strategic implications of the new financial regulatory architecture within the EU and the UK. Based on a series of discussions with senior regulators within the EU and the UK, as well as senior staff from member companies of the IRSG, the report follows on from previous work which looked at examples in the financial services sector where UK regulation is super-equivalent to European directives, and now considers how the issue of super-equivalence could develop under new regulatory structures.

The findings confirm that financial services firms in the UK have significant concerns regarding recent and planned changes in the regulatory architecture and approach.  There is also considerable tension between policymakers in the UK and the EU as the UK seeks to retain as much flexibility and discretion as possible, whereas the EU authorities want to deliver a single EU rule book and maximum harmonisation.

Download The Implications of the New Financial Regulatory Architecture from the City of London website