Daily Management Review

The EU to step up control over British financial companies


09/20/2017


The European Commission is going to propose to introduce stricter control over foreign financial companies that conduct business in the EU. This measure is supposed to expand the control of European regulators over London, Europe's largest financial center, after Britain leaves the block, Reuters reports.



pexels
pexels
This proposal will cover all financial sectors that operate within the EU under the so-called equivalence regime, a system whereby Brussels grants access to firms outside the EU that comply with rules similar to the rules of the block.

After Brexit, equivalence is seen as the most likely scheme for regulating the activities of British firms in the EU, although the country's financial services sector promotes easier access to the continent's domestic market.

According to the draft legislative proposal, which is available to Reuters, EU leaders will increase their monitoring powers for all foreign financial services that are subject to equivalence decisions.

This will complement previous steps to strengthen inspections of specific activities, such as clearing, which has already enraged Britain.

EU regulators will have to regularly monitor the regimes of external financial regulation and inform the European Commission about possible circumstances that may require a change or a rapid revocation of the equivalence decision.

At the moment, regular checks are expected only for certain financial services industries.

Regulators will monitor "regulatory, supervisory, law enforcement and market changes" in other countries with EU equivalent financial sector norms.

In some cases, EU supervisors can also request "on-site inspections" as part of coordinated monitoring with foreign regulators, the draft document says.

The Paris European Securities and Markets Authority will receive more resources, because it will need to control more foreign regulatory regimes.

So far, the EU has taken decisions that would allow for the provision of equivalence status for various suitable foreign sectors, ranging from credit rating agencies and accounting to investment and insurance companies.

The United States, China, Japan, Canada and South Korea are among the countries that have reached equivalence agreements with the EU for specific financial sectors.

The EC's legislative proposal, which is expected to be published on Wednesday, will require the approval of EU countries and European legislators.

source: reuters.com






Science & Technology

China takes the lead in quantum cryptography

Gartner: Chinese smartphones lead sales

Bitcoin Mining Worsens Global Warming Effect

Europe overtakes US by number of patents for self-driving car technologies

Samsung introduces display technology for folding screens

How retailers use technologies to increase sales

Facebook releases videochat devices Portal and Portal Plus

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

World Politics

World & Politics

Tumblr, Facebook wage war against adult content

Arrest of Huawei’s top manager endangers US-China trade truce

Has Macron given up to Yellow Vests?

What to expect from G20 Buenos Aires summit?

China steps up space race with the US

Climate change will cost US $ 500 billion a year

China manages to stop growth of big cities population

Donald Trump thanks Saudi Arabia for low oil prices