The Committee of European Securities Regulators (CESR) has released its second round of consultation ...
The documents contain proposed standards for the providers of securities services, such as online brokers, which would be applied equally across the European Economic Area, including the EU.
The proposed standards come as a response to the relevant directives from the European Commission.
The standards have two purposes: to promote market integrity, and to provide investor protection.
Current regulations regarding levels of risk that private investors can take on vary considerably between EU member states.
Service providers, particularly in the UK, argue that adopting more stringent customer checks to minimise trading risks would put an undue financial burden on parts of the industry.
Execution-only brokers, for example, argue that their reason for being in the first place is to provide cheaper service that leavs all investment decisions in the customer's hands.
CESR's new proposals focus on authorisation, transparency, reporting rules and prevention of market abuse, which it says would best enabe the financial services industry to meet the objectives outlined above.
Responses to the second round of proposals are due to be received by 15 March this year, and CESR is aiming to publish final standards by June.
100 new clients
Achievements, charity work and other happy snippets
Square Mile’s series of informal interviews
Partner Insight: The rise in demand for DFM and multi manager solutions has been largely driven by new mandates from the regulator, says James Bampton, head of UK intermediary distribution at Architas