Tuesday, May 29, 2012
Author: David Schwartz J.D. CPA David Schwartz J.D. CPA
In 2009, the heads of EU Member States and governments called for harmonised regulation and integrated supervision to ensure a true level playing field for all actors at EU level. With the establishment, and good start, of the ESAs and the ESRB, I think we are making good progress in this direction. However, the financial market is global both for participants and investors. It goes beyond Europe, and therefore the greater harmonisation within the EU needs to be complemented with international convergence and cooperation. I strongly believe that Europe can lead by example here, to show how convergence and good cooperation between different national member states and their regulators provide more effective and efficient regulation of cross-border entities and markets.
The world is strongly linked and any one financial market may be damaged by another market which is not sufficiently regulated. Indeed, such regulatory competition also does not allow investors to benefit from appropriate protection which cannot be in the interest of any regulator or society as a whole.