UK concerns grow as EU demands financial power strip

UK concerns grow as EU demands financial power strip

Last week The European Union demanded that powers be stripped from the UK’s financial regulators and handed to Brussels. Could this move put further pressure and strain on the city’s relationship with the rest of Europe?

On Friday, 1st of August, the European Commission called for the EU’s three financial supervisors to play a greater role in regulating banks, insurers and markets, with new powers that in turn will dilute the effectiveness of both the Financial Conduct Authority and the Bank of England.

This isn’t the first time that new and proposed EU laws have appeared to be detrimental to London’s position as a world class financial center. In recent years banks have been forced to cap bonuses, under EU rules, affecting their ability to compete with institutions in the US,while authorities are introducing a tax on financial transactions likely to disproportionately affect Britain. Actions such as these have added to the concern felt in the UK over the EU’s growing influence.

Mathew EliotChief Executive of Business for Britain, Matthew Elliott said: “There is a real danger that powers like these could be used to undermine Britain’s position as the global capital of the financial world, a position enviously coveted by some on the continent” […] “Fundamentally the British people and their institutions should regulate Britain’s banks and financial industry.”

The European Commission further added that the costs of the new workload would be funded not out of government and EU budgets, as at present, but from a levy on banks and insurers. It said the fee should depend on the size of the bank, meaning the UK is likely to bear most of the costs.




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