European Commission issues call for evidence on regulatory burdens

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The European Commission has issued a consultation on the way financial services businesses are regulated and the burdens of EU legislation.

The Commission will take evidence until 6 January, with a particular eye focus on unnecessary regulatory burdens, the interactions of different rules and unintended consequences from requirements.

It comes after Bank of England governor Mark Carney warned of the need to make EU rules more flexible and tailored to countries both inside and outside the single currency.

The Commission says it is seeking to reflect on rules that have been implemented over the past six years concerning financial institutions, markets and infrastructures.

It says: “Given the large amount of legislation put in place and the interactions between them, there is a need to understand their combined impact and whether they give rise to any unintended consequences.

“It is also important to reflect on whether there are unintended barriers to new market players and innovative businesses preventing them from entering markets and challenging incumbents.”

On regulatory costs, the Commission says it is particularly keen to hear evidence of excessive compliance bills, duplication of reporting requirements and costs related to the updating of contracts when regulation is updated.

The Commission will report on the main findings of the report by mid-2016.