Press Release

UK financial services industry calls on EU Commission to avoid new regulations in the retail markets

17 July 2007

Leading UK finance services bodies today jointly called on the European Commission to avoid unnecessary new regulation in the retail markets and concentrate on applying better regulation principles to existing legislation.

Trade associations representing the UK financial services industry have jointly written to EU Internal Market Commissioner Charlie McCreevy in support of the EU Commission’s recent Retail Financial Services Green Paper. The industry’s letter points out that EU retail financial services markets are diverse, and that companies need to tailor their services accordingly. New regulations aimed specifically at fostering the cross-border sale of individual products can sometimes have unintended and costly consequences for customers. Market-led initiatives are preferred by industry.

The industry encourages the Commission to continue to focus on consolidating and improving the application of existing legislation in the retail markets, rather than on new legislation, except where there is a very clear cost-benefit case.