Regulatory Review – Simplified Regulation, the MiFID and Basel II: Part II

This article continues George Walker’s review of some of the most significant developments that have taken place in financial regulation over the last year. The work of the UK FSA was considered in the first part of this article which was published last month. This section examines some of the main events at the EU and international levels. Final comments are drawn with regard to emerging trends and challenges at the international, EU and UK levels.

George Walker, Centre for Commercial Law Studies, London

Europe

The European Commission has welcomed the agreement secured on the adoption of the Services Directive in February 2006. While this may not have any immediate significant effects in the banking and financial markets area due to the existence of separate measures already in operation including the 2000 Banking Consolidation Directive, the MiFID and the Insurance Directives, this is important in extending the same principles to other sector areas. This is a significant achievement in light of the previous resistance expressed by many interest groups in a number of Member States.