THE BRITISH government rushed to defend the banking industry yesterday, saying a planned European Union reform of market trading rules must not harm competition.
The European Commission has just ended a public consultation on changes to its markets in financial instruments directive (Mifid), a set of rules that have torn down barriers to cross-border trading in shares.
“If we get the Mifid review right, we have the potential to build on this progress. But if we get it wrong we could set ourselves back a decade,” financial services minister Mark Hoban told an industry conference.
However, the International Capital Market Association yesterday raised its concern over a “rushed” review process, which it said could result in costly unintended consequences.
Senior adviser John Serocold said: “We have to go on working with policy makers to improve these proposals.”