Financial Services Partner Nathaniel Lalone was interviewed by on a draft legislative proposal regarding the EU's equivalence framework for third-country investment firms. The new proposal softens a complicated proposal by the French that would have restricted third-country equivalence dramatically. Nate stated, "The compromise proposal seems to be a step in the right direction, away from the French proposal, as there is no longer an overt restriction or limitation on the third-country [equivalence] regime. However, giving EU authorities the right to place conditions on third-country firms that use equivalence could be a stalking horse to bring back some of the most heavy-handed aspects of the French proposals." While there are several unknowns with this proposal, Nate added, "The key language in the article for the commission to place conditions on a third-country firm using equivalence is 'regulatory arbitrage.' A third-country firm could be forced to meet any number of EU requirements that the EU would impose on its own investment firms." ("Leaked EU Paper Softens French Blow to MiFIR Equivalence," December 10, 2018)