No-action letters have been a hallmark of US
financial services regulation for some time now. Would European
markets benefit from the same tool?
Should the European
Securities and Markets Authority be able to issue no-action
Not many regulators would call themselves popular with
the entities they oversee, but the European Securities and
Markets Authority (Esma) in particular is no stranger to
criticism. Asking its subjects to comply with what they call
burdensome and, on occasion, error-laden regulations is one
thing, but to make matters worse, these are largely
unchangeable by the time they come to fruition.
Many in the market say they welcome enhanced regulation, and
accept the need for it following the financial crisis. However,
when regulations are ambiguous, irrelevant or even potentially
damaging, it can be hard not to become frustrated by the
It's not the case in the US, though, where government
agencies are able...