FCA snubs EU twice on regulatory guidance

Simon Embley

The Financial Conduct Authority has rejected formal EU guidance on financial regulations this summer in favour of rules that assist bankers and brokers.

The Financial Times reports that for the first time, the regulator has publicly sided with different interpretations of two EU rules in the past three months.

In May, the FCA decided against the implementation of tough new short selling requirements by the European Securities and Markets Authority.

Instead, the FCA allowed banks that buy and sell over-the-counter derivatives to seek a market exemption alongside Germany, France, Sweden and Denmark.

Also, on 15 August, the regulator took a different stance on the Alternative Investment Fund Managers Directive by allowing fund managers to offer both AIFM services and brokerage services on a cross-border basis.

Speaking to the FT an FCA spokeswoman says: “The FCA is fully engaged with Esma’s policy work, and carefully considers each guideline on a case-by-case basis. We have fully complied with all but one of guidelines issued to date.”