The recent crises in financial markets have had hugely damaging economic effects and have called all aspects of financial regulation and monetary policy into review.
Well-informed economic analysis is essential in designing appropriate regulatory frameworks, and in providing insight to financial services firms.
We use a mix of quantitative and qualitative methods to deliver clear and focused advice to our clients.
Our experience ranges from a powerful critique of the draft Alternative Investment Fund Managers Directive for the Economic and Financial Affairs Committee of the European Parliament to a study developing indicators of consumer detriment from personal investment firms for the UK’s FSA; and from a market study of retail non-life insurance in Europe for the European Commission’s DG MARKT to exploring the implications of change in trading terms for the London Metals Exchange.
We have recently provided a cost-benefit analysis to the Financial Conduct Authority (FCA) of proposals for a new Consumer Credit Regime. This included analysis of the payday lending industry.
We have recently analysed the costs and benefits of the European Securities and Markets Authority's technical standards related to the Short-selling Regulation and to the European Market Infrastructure Regulation (EMIR).
We worked with DG MARKT of the European Commission on its review of the MiFID. We have developed quantitative and qualitative cost-benefit analysis of the possible impacts arising from the proposals for revising the Framework Directive. MiFID is very wide-ranging in scope, including high-frequency trading, market micro-structure, investor protection and many more topics.
The City of London published our study in late summer 2011 on the value of Europe's international financial centres to the EU economy. The report demonstrates that the activities of international financial centres are not socially useless (or even socially destructive) and that financial sector innovations are generally not destructive. International financial centres produce and contribute towards a whole host of socially useful functions that households, businesses and governments benefit from.
Our clients are both public sector policy-making organisations, and private sector companies and associations. They have included the European Commission, the Financial Services Authority, the European Parliament, the City of London, the London Metal Exchange and many others.
Our team in this field includes: Andrew Lilico, Ross Dawkins and Deborah Drury.