More rules will curb EU financial services growth, report

Regulators should hold-off introducing new rules in response to the credit crunch and the current economic climate or risk impacting the growth of Europe’s financial services, says a new report by London Economics and published by the City of London Corporation. In a recent report, “The Importance of EU Wholesale Financial Services to the EU Economy”, London Economics says that it is possible that additional regulation, provided it is “proportionate and targeted”, could be useful to restore confidence and stability in the financial system but it countered that “there is a high risk that, on balance, regulatory developments will impact negatively on the growth prospects of the sector”.