NFU is working to create sustainable and competitive regulations in the financial sector, and we often stress the importance of having the same regulations everywhere. A level playing field is a sound and efficient playing field.

When regulating the financial sectors, either by EU regulation or national law, it must be ensured that the rules help to create a level playing field throughout the whole EU area. However, it is still important to respect different national practice and culture.

A level playing field must also involve the so-called shadow financial sector, best defined as a sector working with financial products but that is not under the same scope of regulation as the established sector, for example private equity firms.

Lack of a level playing field could lead to a growing shadow financial sector where employees’ rights are weakened, consumer protection is lacking and more systemic risk builds up.

Financial legislation must be fair, well-designed and avoid building regulatory complexity. Regulatory overburden can lead to excessive cost cutting and short-term oriented behaviour by financial companies. Excessive complexity creates an opaque regulatory framework which undermines sustainable growth, rule compliance, as well as sound and effective supervision.

Healthy financial institutions are crucial for society’s long-term growth and prosperity and must be allowed to act on a level playing field of competition and fair regulation.

NFU thinks that all financial market players should be subject to the same rules and supervisory, no matter what nationality or type of business.

National culture, practice and context needs however to be considered and respected when deciding on rules and controls. This concern not least us Nordics with our unique model.

The growing financial shadow sector needs to be in the same scope of regulation as the established financial sector, otherwise a level playing field will not be a reality.