Actualités
Dealing with crisis
Source: Compliance Reporter | Institutional Investor
The Czech National Bank hit out at developed market regulators last week for their handling of the recent market turmoil. Miroslav Singer, vice governor of the CNB, which is also the country’s regulatory authority, told CR that the recent events are a good argument against giving up regulatory control over international firm’s local branches to home regulators.
Singer said, “Given that the regulators of the developed financial markets have not exactly excelled before or during the crises, the currently discussed shift of regulation rights to regulators in developed markets (home regulators) is more difficult to justify.” An official close to the Polish Financial Services Authority supported Singer’s view.
The issue of mutual recognition and giving up regulatory control to home regulators has been plagued by the recent volatility on the US and UK markets with observers saying it may be more difficult to move the issue forward. (CR 05/05)
Sebastian Pietrzyk a lawyer at Stopczyk and Mikulski Law Firm in Warsaw said, “Emerging markets, after a revolutionary time of economic reform and the organization of economic situations, are better prepared [than they were a few years ago] to act during times of crisis.”
He explained that emerging markets will not want to recreate the regulatory frameworks of developed markets as they need greater guarantees of the credibility of the financial system. He explained that they will develop a more rigorous system with greater supervisory control.
The Czech National Bank hit out at developed market regulators last week for their handling of the recent market turmoil. Miroslav Singer, vice governor of the CNB, which is also the country’s regulatory authority, told CR that the recent events are a good argument against giving up regulatory control over international firm’s local branches to home regulators.
Singer said, “Given that the regulators of the developed financial markets have not exactly excelled before or during the crises, the currently discussed shift of regulation rights to regulators in developed markets (home regulators) is more difficult to justify.” An official close to the Polish Financial Services Authority supported Singer’s view.
The issue of mutual recognition and giving up regulatory control to home regulators has been plagued by the recent volatility on the US and UK markets with observers saying it may be more difficult to move the issue forward. (CR 05/05)
Sebastian Pietrzyk a lawyer at Stopczyk and Mikulski Law Firm in Warsaw said, “Emerging markets, after a revolutionary time of economic reform and the organization of economic situations, are better prepared [than they were a few years ago] to act during times of crisis.”
He explained that emerging markets will not want to recreate the regulatory frameworks of developed markets as they need greater guarantees of the credibility of the financial system. He explained that they will develop a more rigorous system with greater supervisory control.
