BIS Review 81/2000  2  After all, the new media make it possible to offer financial services from anywhere, which means that potential customers, competitors and also supervisors cannot always tell where the provider legally domiciled is and whether or not the enterprise has already obtained a license. Adding to these are changes in market conditions.
And the problem starts with the scope of that supervision. Large investment firms and thirdcountry branches are still not covered by it. This situation should be changed to restrict regulatory and supervisory arbitrage. Then there are the options and national discretions contained in European regulation. Some of them are still exercised differently across the euro area. It’s up to legislators to harmonise them.