Three associations call for “proportional” regulation
FIA joined with the Global Financial Markets Association and the International Swaps and Derivatives Association in submitting a joint response to a discussion issued by the European Securities and Markets Authority on EU financial benchmarks regulation. In their March 31 response, the associations said they support the overall objectives of the regulation and recommend the endorsement of IOSCO principles. However they advocated for a regulatory framework that will protect consumers and investors but not be so burdensome that it discourages market innovation and the participation of contributors in the benchmark-setting process. The associations advocated for applying the principle of proportionality for non-critical benchmarks, establishing clear guidelines on third country benchmarks and recognizing other standards within existing EU legislation to maintain consistency.
