The deputy chief executive of the Association of Private Client Investment Managers and Stockbrokers, said the three European supervisory authorities should recognise the diversity inherent in the European financial system, rather than adopt a one-size-fits-all approach that treats all institutions as large banks.
His comments follow a 26-page consultation, which closed on 31 July, issued by the European Commission on the review of the European system of financial supervision.
Mr Barrass said: “We are concerned about the overwhelming predominance of ‘bank-think’ across EU institutions, infusing legislation and regulatory approaches and creating a potentially damaging one-size-fits-all result that targets all firms as if they were banks – and often large systemic banks at that.
“The surrounding melee of constant regulatory change and reshuffling of responsibilities, especially because of the advent of the single supervisory mechanism, has in itself created an obstacle to the understanding and fulfilment of their mandates.”
|Carl Melvin, managing director of Glasgow-based Affluent Financial Planning, said: “Trying to make different financial institutions fit into a mould is a pretty idiotic approach to regulation. You need more effective engagement that creates the sense that the regulator is listening to needs of businesses, so you have proportionate and intelligent supervision.”|