UK & Irish MEPs most sceptical on regs
Wednesday 4 January 2012 - by Andrew.Hickley@gfsnews.com
A survey released on Wednesday found that UK and Irish MEPs are the most dubious over reforms aimed at deposit-taking banks to improve consistency for investors, believing that changes are likely to impact on EU growth.
The survey found that UK and Irish MEPs were also unconvinced by the merits of reform on the asset management sector and the effects it will have on economic growth.
While 43 per cent of the parliament believed that reform would improve accessibility to investing for the wider public, thereby boosting growth, only 13 per cent of UK and Irish MEPs said this is a likely consequence. Fifty-four per cent of British and Irish members said that the impact of reforms was unlikely to boost the economy.
In addition, only 17 per cent of UK and Irish MEPs believe that changes to the Prips directive will create a harmonised and consistent market for investors in the EU. The report says this suggests "that MEPs from the EU's most sophisticated asset management market are most cynical that new regulations affecting it can succeed", with 41 per cent of polled MEPs believing the new regulation will improve consistency while 17 per cent saying it will suffer.
Helena Walsh, regional director at Cicero Consulting, said: "The busy regulatory agenda comes at a time when big questions are being asked about the UK's position in Europe. The details of the new inter-governmental treaty that was agreed by 26 leaders at the European Summit on 8 December are yet to be unravelled but [UK Prime Minister] David Cameron's use of a veto - when Europe was asking him for help - will not be forgotten soon.
"British officials are already facing difficult negotiations to retain concessions won in October on derivatives regulation and the use of a veto to protect the UK's financial services industry could have contributed to the prevailing view in Europe that the City of London is separate from the rest of the EU.
"An area to watch in 2012 is how widespread this sentiment is and whether it restricts the ability of UK businesses to articulate themselves in Europe."
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