‘I speak as somebody who set up a business in 2007 in financial services, which I’m pretty sure you would not be able to do now.’

From Citywire

Leading Brexit MP Jacob Rees-Mogg has described MiFID II regulations as ‘sheer bureaucracy’ as he outlined plans for changes to financial services regulation after the UK leaves the EU.

MiFID II regulations designed to improve transparency and reporting standards in financial services came into force in the EU this year.

Speaking at the Conservative party conference in the UK, Rees-Mogg, who set up asset manager Somerset Capital Management in 2007, criticised the rules.

‘The question is should we be regulated in a way that meets its purpose? And MiFID II, which is the latest investment management regulation, is sheer bureaucracy to benefit incumbents.

Rees-Mogg claimed the new rules have introduced requirements that do not protect investors but do impose onerous requirements on firms.

‘You now under MiFID II are required to give your counter-party 65 pieces of information to place a single trade. When I set up in 2007, you rang up the stockbroker and you said “this is the order I would like to place,” and the order went through.

‘And that worked very effectively, there were no complaints about that. There was no risk of that, it was how the City had worked very successfully,’ he said.

‘You now have to give your date of birth and your national insurance number. Why? What safeguard is that for any individual investment, any retail investment, any wholesale investor?’

Rees-Mogg’s comments followed a speech by Financial Conduct Authority (FCA) chairman Charles Randall in which he suggested ‘we may need different, smarter regulation’ when it comes to paperwork and disclosure.

Although Randall said he does not see Brexit ‘as an opportunity to join a race to the bottom in regulatory standards’ he also said the FCA ‘must keep an open mind’ about changing rules where necessary.

This was the strongest indication the regulator has given that it would reconsider EU rules after Brexit.

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