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In a brief analysis of the new draft Investment Services Directive (ISD) Karel Lanoo questions if the markets are in general happy with the text as it currently stands or if a counter-offensive is in the making. After a long consultation process and last minute changes, it has been fairly quiet in the meantime, Lanoo states.
The Proposal also reflects some of the general problems that have been raised regarding the implementation of the Lamfalussy approach:
“The EP will get into the details of 'prior consent', 'best execution', 'pre-trade transparency' and make the so-called framework principles even more detailed”, he concludes. “It has been argued recently that the Lamfalussy procedure does not work, and that it will lead to the creation of a European SEC. However, the spirit of the approach must be respected if the EU wants it to work in reality. The brief analysis above indicates that this is rather not the case.