With greater regulatory cooperation in Europe inevitable,
forging and maintaining relationships with European supervisory
bodies should be top of firms list of priorities.
That was the message from panellists at IFLRs European
Capital Markets Forum in London, speaking at a session on the
future of bank regulation.
Even at the lightest end of European reforms, more
centralised European regulation is inevitable, said
Michael Raffan, head of Freshfields financial services
group. Institutions must be ready for a shift from the
domestic to the European stage.
Peter Bevan of Linklaters agreed, citing the life of a
competition lawyer back and forth on the Eurostar
to Brussels as the model that will need to be
Theres going to be a plethora of new bodies to
interact and build relationships with, said Bevan.
Thats the real challenge for
Speaking on behalf of the organisations industry
members, Lorraine Charlton from the Association for Financial
Markets in Europe (AFME) drew attention to the potential
conflicts that could arise between national, regional and even
global regulators in a revised regulatory system.
Its a real concern where the lines will form
around national and regional regulators, she said,
and how those conflicts can be resolved.
And Simon Dodds of Deutsche Bank insisted that a single
European regulator was the most desirable outcome, despite
admitting that at the moment the regulatory space is one
I would prefer, at the least, a properly coordinated
European regulator, he said. Dealing with lots of
different regulators and regulations is just a