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Wed 06 Jun 2009Britain opts out of new EU financial controls

BRITISH CHANCELLOR Alistair Darling has managed to secure national regulators the upper hand when it comes to implementing new EU rules on financial supervision.

Draft proposals for a two-tier supervisory structure for the 27-member bloc released by the commission last month would allow EU authorities to over-rule national regulators in ongoing bank disputes. The new bodies, soon to be set up to police the banking, securities and insurance sectors, would also have the power to impose emergency measures, including a restriction on short-selling during future financial crises, and would control pan-European credit-rating agencies and central party clearing houses.

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