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EU watchdog says regulators should ban 'letter-box' investment firms

Reuters  |  LONDON 

LONDON (Reuters) - Regulators should prevent investment firms from setting up shop in one jurisdiction to avoid stricter controls in their home state, the European Union's markets watchdog said on Thursday.EU supervisory authorities are concerned about a "race to the bottom" as financial services firms shift operations after Britain leaves the bloc in 2019.National securities regulators should "mitigate the risk of letter-box entities and ensure that any relocation is effective", the European Securities and Markets Authority (ESMA) said in an 'opinion', or formal guidance.Regulators should ...

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First Published: Thu, July 13 2017. 16:15 IST