FSA criticises MiFID revision

According to the FSA the current draft of the MiFID could provide a hostile environment to third country investors in Europe. Under the current proposal, non-European firms are allowed to conduct business if financial regulation in their home country is considered equivalent. Furthermore, it requires a physical presence in the EU for foreign companies.

The FSA argues that these requirements can be harmful to the EU investment climate and competitiveness, considering the nature and flexibility of global financial markets.

David Lawton, acting markets director of the FSA, added at the BBA MiFID Conference in London that the regulator welcomes the provision of passport rights to market services across the EU. 

The Markets in Financial Instruments Directive is intended to harmonise European financial markets as part of FSAP, the EU's Financial Services Action Plan. It regulates portfolio management service providers, including depositories, advisers and brokers.

MiFID is currently in the level 1 co-decision phase, witht the development of level 2 implementation measures throughout 2012.

David Lawton's speech can be found here.

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