The heads of eight European investment trade associations have sent a joint letter to the European Commission to press for a fair deal for investment firms in the proposed Risk-Based Capital Directive.
The Directive sets out the criteria for the amount of capital a firm should hold against business risks, based on the standards set by the Basel Committee of international banks. However the trade associations' letter argues that many of Europe's investment firms have much simpler structures and do not face the same kinds of business risk as the large banks represented in Basel.
Angela Knight, chief executive of the UK's Association of Private Client Investment Managers, comments: "The proposals as currently drafted would increase costs for many types of investment firms without increasing investor protection. As representatives of Europe's investment communities we have come together to ensure that the rules are sensible, workable and properly reflect the whole spectrum of investment business across Europe."