Tougher EU regulation 'will not put firms at a disadvantage'

6 September 2010

Tighter regulation over various areas of the financial sector in the EU will not put companies involved in them at a disadvantage, it has been said.

A framework of changes are set to be officially laid out later this month, with three new watchdogs to be put in charge of drawing up rules for the banking, insurance and securities sectors.

Michel Barnier, the EU's internal market commissioner, told the Financial Times that greater centralized control of financial activities such as derivatives trading and short selling will be "intelligent and not discriminatory".

He pledged that European firms would not be left behind their international counterparts by the new rules.

"The Americans are doing the same reforms in parallel [to the ones] that we are proposing," said Mr Barnier.

"We don't have enough supervision at the moment. People must adapt."

Earlier this month, Mr Barnier said the accord reached by European regulators on the new financial watchdogs would make it easier to identify risky business practices, reported Bloomberg.

By Claire Archer

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