Standard Life has warned of increasing “conflict and ambiguity” in EU financial services regulation and called for an over-arching review of how different policies interact.
Since 2009, around 60 pieces of financial regulation have been put together in Brussels.
Some of these were new versions of existing rules – such as the Markets in Financial Instruments Directive II or the Insurance Mediation Directive II – while others are entirely new policies like the Packaged Retail and Insurance-based Investment Products directive.
While individual policies can be reviewed, there is no process in place to assess the regulation created by Europe in the round.
In its response to a Government consultation on the balance of powers between the EU and UK, Standard Life says: “Given there is so much legislation in the field of financial services, there should be a very heavy focus on ensuring legislation is not drafted in silos – that is to say, the legislation needs to be consistent.
“For example, Mifid, Prips and IMD2 may be reviewed individually in the future, but there may not be a review that examines them together and identifies issues, e.g. gaps in scope or inconsistencies in legal definitions.
“A process for reviewing sectoral legislation should be put in place urgently as the instances of conflict and ambiguity are increasing.”