Ussher rejects EU financial regulator
City minister rebuffs calls for a pan-European financial services watchdog
Pro-Europe economic secretary and city minister Kitty Ussher has rejected
Brussels’ calls for a single Europe-wide approach to the regulation of financial
services or a single pan-European regulator.
Ussher made clear the UK government’s view that the best way forward is to
improve the current nation-state-based ‘Lamfalussy’ arrangements and an
‘evolutionary approach’ to the issue.
Speaking at the Centre for European Reform on the opportunities and
challenges resulting from breaking down national barriers in financial markets,
she said the aim should be to move away from the regulatory approach to more
positive action to ensure Europe benefits from decisions already taken, with a
constant dialogue with the financial services sector so the government can
ensure its voice is heard at the EU negotiating table.
She spoke out at the Treasury and FSA published a joint discussion paper on
the review of the existing arrangements which involve a four-layered approach to
regulation and supervision.
Ussher said the need was to make these work more effectively for Britain and
the rest of the EU, adding: ‘To do that, they need evolution not revolution; we
must avoid drifting towards a pan-European regulator that would be rigid and
stifling.’