SKILLS & EXPERTISE

FINANCE

In recent years the financial markets have changed rapidly and become increasingly complex and interconnected. Thorough and well-informed economic analysis can help regulators design appropriate regulatory frameworks and assist providers of financial services with lobbying and during consultation processes. Economists can also help to resolve disputes between firms and authorities.

Europe Economics assists in performing analyses of costs, benefits and market impacts of financial regulation proposals. The firm can help design reforms and regulatory strategies, and advises on technical issues connected with specific regulatory decisions. Staff at Europe Economics have a sound knowledge of the financial and economic literature and are capable of performing advanced reviews and studies that combine a rigorous analytical approach with a strong focus on the client’s needs.

Europe Economics has assisted financial regulators and market participants across a broad range of issues. The firm has advised the UK Financial Services Authority (FSA) in a series of projects on compliance costs and on the likely impact on competition of possible statutory regulation of the mortgage and general insurance industries. The firm has also analysed techniques for measuring the past performance of unit trusts and open-ended investment companies.

Competition work relating to financial services includes a study for the Irish Competition Authority looking at competition in the non-life insurance sector, a study motivated by concerns about the rising cost of insurance premiums. The firm has also advised an exchange during a competition investigation in the UK.

Other work includes papers on short selling and the functioning of markets under conditions of bounded rationality.