Speed of bringing in new regulations 'may result in poor legislation'

The European Commission’s speed in bringing in securities regulations is resulting in unexpected consequences and poor legislation, according to the Central Bank’s director of markets supervision, Gareth Murphy.

Speaking at the Funds Congress in Dublin yesterday Mr Murphy said the manner in which the European Commission delegates the finer details of legislation to experts can result in the purpose of the regulation being diluted or even lost.

“However, the consequences of such delegation can be unpredictable and may not align with the intention of primary legislators, especially if the primary legislation is unclear. In some cases, the thrust of primary legislative acts may be diluted when the technical rules are written. There is also the risk that, when challenging deadlines are set for the delivery of such technical rules, the quality of such rules may suffer.”