House of Lords committee launches inquiry into EU regulation

A House of Lords committee has launched an inquiry into the impact of European financial regulation on the UK to establish whether the Government has defended the national interest.

The inquiry will also investigate whether the regulatory framework put together since 2007 will be able to avoid another crisis.

In addition, the committee will examine whether reforms have met the needs of consumers; the balance of power between member states and the EU over financial regulation; and supervision and whether there are any inconsistencies between regulation of the eurozone and the wider EU.

Since 2009, more than 60 directives and regulations have been created by Europe in an effort to increase resilience in the financial sector and to reform financial markets. Three new European supervisory authorities have also been created to cover banking, insurance and financial markets.

House of Lords EU sub-committee on Economic and Financial Affairs Lord Harrison says: “The pace of reform since the outbreak of the financial crisis has transformed the EU financial regulatory architecture. Given that the Commission states that the majority of major reforms have been agreed, now is an ideal time to take stock of the major reforms that have been put in place.

“Are there any overlaps or inconsistencies? What gaps in regulation remain? What will be the impact of these reforms not only on the financial sector but on ordinary consumers? And where does all of this leave the UK?

“These are the key questions that we will be seeking to address in our inquiry. We would encourage anyone with relevant expertise or experience in these issues to submit evidence.”

The committee has published a call for evidence. The deadline for written submissions is 30 September.