Freshfields Bruckhaus Deringer: “Following previous consultation (see Daily news 22 October 2013), the Government has published a report on the balance of competences between the UK and the EU in the field of financial services and the free movement of capital.  The report states that evidence received indicates that, whilst the balance of competences is broadly appropriate in areas covered, this is often undermined by poor policy making. The report recommends that the EU undertakes significant reform of the existing EU policy-making framework and process, adopts a more proportionate approach to legislation in all sub-sectors and gives greater consideration to the principle of subsidiarity in retail market sectors. The report is accompanied by a paper entitled “Control and Management of International Capital Flows: A Review of the Literature”, which reviews research and policy literature on international capital flows and the costs and benefits of policy measures to control and manage these.”

• Copies of the report; evidence submitted to the review; and accompanying paper are available.