Confusion reigns

Exactly what the role of home and host regulators will be for the regulation of branches under the Markets in Financial Instruments Directive (Mifid) remains an elusive issue. The industry is clear that firms should have to follow only one set regulations, but the language used by the Directive has raised the very real possibility of dual regulation for branches. Victoria Pennington reports

Confusion reigns," said one exasperated source when discussing the "horror" of the home host situation. The phrase "a horrendous cock-up" also appeared while researching this subject – a sentiment that should ring bells with many compliance officers located in the European Union, and particularly in London.

The "horror" of the home host situation is that even at this late stage, uncertainty still