US counsel fear EU light touch advantage

Author: Edward Price | Published: 13 Jun 2016

As the EU appears to be adopting a looser regulatory stance, the European Commission has indicated renewed support for its universal banks. US market participants are concerned about a potential competitive advantage and counsel see clashes ahead.

In recent years, the EU has seemingly moved towards a lighter touch, both in terms of implementing existing rules and in policymakers’ attitude to future rule writing. In February, it became clear the Markets in Financial Infrastructure Directive (Mifid II) was to be delayed. There is also a slower pace of implementation. 

This month, the EU announced a three-month delay in collateral rules, whereas for the biggest US banks to comply the deadline remains September 1. None of the above is a clear cut European break from global regulatory standards, although a growing trend is clear.

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