FSA slams MiFID

LONDON – Executives from the UK's Financial Services Authority (FSA) sharply criticised the Markets in Financial Instruments Directive (MiFID) at the regulator's annual meeting in July. Callum McCarthy, chairman at the FSA, specifically condemned the potential costs of the legislation as well as the manner in which it had been approved by the European Parliament. Nonetheless, the FSA is obligated by the EU to translate the directive to UK law by October 2006, for implementation by April 30, 2007.

"It is deeply unsatisfactory that UK financial services firms face major changes, with the associated costs, for an initiative that has been subject to no comprehensive EU cost-benefit analysis to assess the specific contribution it might make to unlocking the prize of a more integrated European capital market," says McCarthy. "That kind of approach to policy-making cannot be sensible. We will do all we can, alongside a growing band of regulators who share our commitment to assessing costs and