UK wields "significant influence" on EU financial regulation: CLC research

Research published on Monday by the City of London Corporation (CLC) showed that the UK "punched above its weight" in European Union (EU) financial negotiations.

The CLC represents the financial industry in the UK, predominantly centered in London and known as the City.

Mark Boleat, Chairman of the policy and resources committee at the CLC, said in a statement: "This ground-breaking research demonstrates that the UK punches above its weight in Europe, and wields significant influence in drafting legislation which affects Britain's important financial services industry."

The post-financial crisis period has seen regulators creating legislation with wide-ranging implications for market structure, in an attempt to make the financial system more robust and sustainable in the event of significant financial shocks.

These regulations include Markets in Financial Infrastructure Directive and Regulation (MiFID II); the European Market Infrastructure Regulation (EMIR); the Capital Requirements Directive and Regulation (CRD IV); the Alternative Investment Fund managers Directive (AIFMD); and the Solvency II Directive.

The UK is to vote on continued membership of the EU in a referendum on June 23, and Boleat said that countries outside the EU still had to abide by the new regulations if they wanted to trade in the EU.

The City's status as a global financial center would be under threat if the UK left the EU. Boleat said: "London is the world's leading financial center, and access to the European Single Market and the ability to influence legislation working through the European organizations are both crucial to its continuing success on the world stage." Endit