GFS LinkedIn
GFS Facebook
GFS Twitter
GFS RSS feed

UK IMA pushes for Mifid detail

Monday 7 February 2011 - by Andrew Hickley

The UK Investment Management Association has warned that regulation must be tailored to the specific financial instrument to which it is applied.

Responding to a European Commission review of the Markets in Financial Instruments Directive, the IMA's director of wholesale Guy Sears says that proposed detailed rules brought in under the review will be meaningless if they fail to take into account the detailed aspects of different financial instruments.

Sears also states that the group has worries over sections relating to the distribution and sales of products, with alignment across the Mifid, Ucits, Aifm and Prips directives vital in order to provide a level playing field for investors.

"We understand why the Commission wishes to draw up a comprehensive framework within which trading in all financial markets may operate," he says.

"However, detailed rules which fail to take account of the specificities of different instruments and trading conventions will not achieve this aim.


"Rules for non-equity markets should be specific to each instrument and should not necessarily be modelled on equity markets."

While he says that transparency requirements are necessary to ensure that retail investors are given a fair level of safety and information across organised markets, Sears also warns that this increased transparency will however only prove worthwhile if rules are tweaked when necessary and that supervisors remain vigilant.

"Alignment across European regulation is needed to provide a level playing field for the operation of firms and for the sale of products across the European Union.

"But making new rules alone will not be sufficient. Existing rules must be consistently enforced. A harmonised approach to the powers of supervisors and the sanctions imposed would benefit all market users."

The IMA's response comes on the same day that the UK Treasury and Financial Services Authority slammed the Mifid consultation process as being "inappropriately curtailed".

Taking umbrage with the rushed consultation, which left just seven weeks including the Christmas break to finalise responses, the pair said that the short period is "not conducive to sound policy making or the production of carefully considered legislative proposals".


WHAT DO YOU THINK?
 
Name:
   
Email:
   
Comment:
   
Post as Anonymous
  Display name
   
Please, enter security code
   
 

No comments yet.

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

Yes

No

Don't know

View results

FIND A REGION world regions