Barnier: City of London is as an asset to the European financial sector but must be properly governed
08 April 2010
He highlighted that financial market self-regulation did not work – addressing representatives of the banking sector at the London Stock Exchange. Barnier believes the solution is appropriate and efficient regulation and that banks must be solid and well-governed.
At a dinner with representatives of the banking sector at the London Stock Exchange London; Barnier highlighted that financial markets replace self-regulation did not work. He believes the solution is not over-regulation but appropriate and efficient regulation.
The AIFMD is essential to the EU financial markets and there is a need to conclude the work on it. He is conscious that that this Directive has caused concerns in London, in particular with regard to third country managers and funds. But the Commission's proposal foresaw a passport for third country managers, subject to strict criteria of equivalence. He believes that this is the right way forward.
He presented the following key priorities:
· Supervisory package is at the core of the EC strategy for the financial sector
· Banks must be solid and well-governed.
· More capital, better capital, rules that avoid pro-cyclicality.
· There must be more transparency in securities transactions.
· Ensure more standardization in the derivatives markets to increase safety and integrity.
· Revise the Markets in Financial Instruments Directive (MiFID) in order to increase transparency on alternative trading platforms.
· A crisis resolution framework is needed on the EU.
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