A group of 11 leading trade associations has launched a bold move to influence the interpretation of imminent European Union financial markets legislation amid fears UK regulators could take an overly stringent approach.

Bodies party to the highly unusual co-operative effort include the Association of British Insurers, the British Bankers' Association, the Investment Management Association and the London Investment Banking Association. The venture underlinesconcerns about the implications of the Markets in Financial Instruments Directive (Mifid), which takes effect in November 2007.