On 10 February 2016, the European Commission published the list of responses it has received to its September 2015 call for evidence on the EU regulatory framework for financial services. There have been 287 responses to its call for evidence. The Commission advises that a summary of the responses will be published at a later date.
The FCA, the Bank of England and HM Treasury were among those who responded. Some points of interest from these responses are:
- The Bank of England suggests that a more differentiated approach to banking regulation according to the size of firms could promote competition, growth and stability.
- The FCA highlights the importance of ensuring any EU legislation is drafted to ensure it remains applicable in the light of future technological developments and innovations. Similarly it states that EU disclosure and communication rules should be drafted in a technology neutral way that accommodates all durable mediums that consumers may choose.
- HM Treasury comments on the impacts of the regulatory framework on consumer protection and confidence. For example, it states that the requirements for revising the deposit protection limit in the Deposit Guarantee Scheme Directive have the potential to negatively affect consumer confidence in the European system of deposit guarantees. Similarly, HM Treasury comments on the Payment Accounts Directive, stating that the need to legislate on some articles and provisions has added an unnecessary layer of administrative and regulatory burden, with no clear benefit to consumers in the UK. HM Treasury’s reasoning for this is that the UK already has domestic non-legislative measures in place for switching current accounts and for basic bank accounts. HM Treasury suggests that the European Commission should assess the impact of changing existing domestic regimes that are working well before creating an explicit or implied requirement to legislate.