Press releases

Deloitte comments on EC proposals for banking reform

29 January 2014

  • European Commission proposes ring-fencing rules, including a ban on proprietary trading

Deloitte comments on the European Commission’s proposals for structural reform of the largest banks operating in the EU.

Clifford Smout, co-head of the Deloitte Centre for Regulatory Strategy, said:

“The Commission is likely to face challenges getting these proposals through the European Parliament and Council in their current form, given how contentious these issues have proved.

“The Regulation would ban proprietary trading at big banks operating in the EU but this is defined in a way likely to leave many banks unaffected. However, an outright ban would still be a step further than any EU country has taken so far, even if it is similar to the US regime.

“National supervisors would have very broad powers to decide whether to impose additional ring-fencing on banks’ trading activities. Even if the ECB ends up taking the lead on these issues within the eurozone, there could be inconsistencies between these rules and those in operation elsewhere.”

                                                         End

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.

“The Commission is likely to face challenges getting these proposals through the European Parliament and Council in their current form, given how contentious these issues have proved" -Clifford Smout, co-head of the Deloitte Centre for Regulatory Strategy

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