European rules to cost London £1bn
EU's Markets in Financial Instruments Directive bad news for City
The Financial Services Authority has
warned that the EU’s Markets in Financial Instruments Directive
(Mifid)
will cost London’s financial district £1bn.
The new rules are designed to create a single market in financial services.
But the FSA said that while Mifid could generate £200m a year in ongoing
benefits, the rules were likely to land companies with substantial one-off
compliance costs.
It may these predictions as part of a formal assessment published over the
weekend.
The report, said the industry would be stung with a one-off implementation
costs of between £870m and £1bn, with ongoing costs of an extra £100m a year.
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