The European Union has introduced a second set of proposals that would make it easier for financial companies to compete throughout the EU’s 25 member states. Under the latest proposal to the Markets in Financial Instruments Directive, investment companies will be able to offer their services throughout the EU, provided they abide by each country’s specific regulations. In addition, the EU will issue “passports” to banks, thus allowing them to share trading facilities with stock exchanges in each country. The proposals, according to Charlie McGreevy, the EU’s internal market commission, also has built-in protection for investors while minimizing the red tape for financial institutions.
