EU proposals for three super bodies to rule over UK’s FSA
The European Commission’s proposals for three EU financial regulators will shift control over the City of London from the UK Financial Services Authority (FSA) to Brussels, the Telegraph reports.
It said: “The plans disregard findings by the Lord's European Union Committee that a fresh treaty amendment may be required for such an increase in EU power. Both the Lords and German legal scholars say the EU may have over-stepped the mark by trying to push through the proposals under single market law (Article 95) by qualified majority vote, which strips states of their veto.”
The three authorities cover banking, insurance and pensions, and securities and markets. They will have "binding powers" to impose rulings on Britain's FSA and fellow regulators, and will be backed by full-time staff with a budget of €68m.
Speed of light
Charlie McCreevy, the single market commissioner, said the package of measures was rushed through at the "speed of light" in order to remedy serious flaws in Europe's banking system and to "prevent future financial crises".
City Minister Lord Myners said the UK would "study the proposals carefully".
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