Speech McCreevy: Transatlantic cooperation in financial services

06 March 2007

Speaking before the US Chamber of Commerce Commissioner McCreevy called for a modern, open and reliable regulatory framework on both sides of the Atlantic. “Regulation of course is essential”, McCreevy said and called for “good, slim-line, principles-based regulation.” The Commissioner refused to prescribe rules for every conceivable situation. “Trying to eliminate risk is not only impossible”, he said. “It invariably leads to unintended consequences.”

With regard to the ongoing discussion on tougher regulation of hedge funds in Europe McCreevy stated that there is a need to monitor the financial stability implications of hedge funds. However, much of this is being done by supervisors, like central banks, and by prime brokers themselves. “Many of the calls for the regulation of hedge funds appear to be coming from people who don't seem to know what exactly it is they want regulated and why”, he said.

The Commissioner also called for getting the balance right in auditors' liability. “I am convinced that audit regulators - not judges or courts - should play a much more important role in seeking to maintain the top audit quality which companies and investors deserve”, he said. Differences in regulation and implementation between the EU and the US are to be minimised.

The Chamber of Commerce will be publishing a report on the competitiveness of the US capital markets shortly.

Full speech
See also
McCreevy article on regulating capital markets

© European Commission