The ACT has responded to the UK Government’s review of the balance of influence and powers between the EU and the UK and in particular in respect of the Single Market in Financial Services and the Free Movement of Capital call for evidence from HM Treasury.
The ACT concludes that the volume of financial regulation from the EU has become excessive but yet a fair degree of EU standardisation and uniformity in legislation and market rules is welcomed. It is a huge benefit for UK businesses to have easy access to the larger pool of investors and the increased competition that comes from the single market. While this uniformity and consistency across Europe can be helpful the ACT believes that there should be greater leeway for some local variations – for complex markets it is unlikely that a single perfect solution exists so that rule making should be permissive of some local experimentation to find better outcomes
The almost complete free movement of capital which already exists in the EU is very much welcomed.