| In a separate speech, Hector Sants, MD of Wholesale and Institutional Markets, revealed there had been no cost-benefit estimates by the EU at any stage in the process so far. Only this week, industry analyst Celent said that although benefits are forecast to exceed costs, estimated spending on MiFID is expected to top €1 billion.
In the light of this, McCarthy gave a commitment to avoid imposing unnecessary costs and to maximise the effectiveness of MiFID, consistent with the legal duties the FSA have to implement the directive. As part of their statutory obligation, the FSA are now working with UK industry stakeholders to produce a cost-benefit analysis of the changes to current regulation that MiFID will necessitate. The regulator is currently planning to consult on MiFID implementation in November.
Despite his criticism of MiFID and the added pressure of other regulatory initiatives, McCarthy stated he did not believe regulation was harmful as long as it was framed after a thorough cost-benefit examination. In respect of this, he underlined his commitment to work with other EU regulators to make rigorous impact assessment a vital determinant of EU legislation.
The full text of Callum McCarthy's speech to the Annual Meeting can be found on the FSA's website. |
