John Tiner, chief executive of the Financial Services Authority, the UK regulator, has called on the European Commission to make sure European Union member states do not try to buck new rules governing financial services.

Tiner is concerned that some EU member states might try to gain unfair advantage by stalling on several of the 42 new directives due to be in place by 2006. Banks and investors will be quick to take advantage of any such "regulatory arbitrage" opportunities.