UK acts to protect online share trades

UK acts to protect online share trades

The UK is leading a bid to amend Brussels regulations, which could cripple online share dealing worth a total of £8.3bn last year.

Link: Level online VAT playing field due tomorrow

Chief Treasury secretary Paul Boateng spelled out Britain’s position on the proposed Investment Services Directive, which includes a requirement for dealers to carry out a suitability test before executing client orders, in reply to questions in the Commons.

He said the restriction would add to costs and would be likely to deter firms from offering execution-only services such as online share dealing and customers from using them.

He said the UK government believes execution-only business ‘should not be compromised by over-burdensome, unnecessary regulation’.

It was helpful to markets, he said, and provides low cost access to a wider range of investors.

The government was ‘making every effort’ to ensure that the draft Directive is amended in such a way that will allow online share dealing to continue.

Treasury figures showed the market soared from £5.5bn in 1999 to £9.6bn in 2000 before dropping back to £8.3bn in 2002.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource