Transcript European Commission DG Enlargement Technical Assistance

European Commission, Technical Assistance Information Exchange
Unit (TAIEX), DG Enlargement
in co-operation with
The Bulgarian Chamber of Commerce and Industry (co-organiser)
Seminar on Financial Services
Sofia, 16 September 2005
Future developments for financial
services. The Green Paper on Financial
Services Policy 2005-2010
Argyro Leoutsea
Advocate, Greece
Objective of the financial services policy for
the future as set in the Green Paper:
1.
2.
3.
4.
Achieving a fully integrated, open, competitive and economically
efficient European financial market
Eliminating any remaining economically significant barriers
Promoting the creation of an EU market where financial services
and capital circulate freely at the lowest possible cost with
adequate and effective levels of prudential control, financial
stability and a high level of consumer protection.
Implementing, enforcing and continuously evaluating the existing
legislative framework, setting up accurately the better
regulation agenda for any future initiatives, improving
supervisory convergence and strengthening European influence
in global financial markets.
Practices to be adopted for the achievement
of the Commission’s objective:
Consolidation of existing legislation,
with few new initiatives;
Ensuring the effective transposition of
European rules into national regulation
and more rigorous enforcement by
supervisory authorities;
Continuous ex-post evaluation whereby
the Commission will monitor carefully
the application of these rules in
practice –and their impact on the
European financial sector.
“Better Regulation” approach:
policy conception, open and transparent
consultation at all levels, establishment of
thorough and convincing economic impact
assessments before launching a new proposal
and ex-post evaluation of regulatory measures
purpose:
- reduction of administrative costs for financial
institutions and
- increase of competitiveness of the European
financial industry
Priorities for the achievement of consistent
application and enforcement of existing rules
– Continued application of open and transparent policy
making with extensive use of consultation
mechanisms at all levels;
– Simplifying and consolidating all relevant (European
and national) financial services rules;
– Converging standards and practices at supervisory
level, while respecting political accountability and
current institutional boundaries;
– Working with Member States to improve transposition
and to ensure consistent implementation;
Priorities for the achievement of consistent
application and enforcement of existing rules
(cont.)
– Evaluating whether the existing directives
and regulations are delivering the
expected economic benefits and repealing
measures that do not pass this test; and
– Ensuring proper implementation and
enforcement, if needed, by infringement
procedures building on existing legislation
and case law.
A three step approach for efficient and
effective supervision
1. Agreeing on overall policy objectives
2. Maximising the current framework, identifying gaps
and
developing existing tools by
– removing inconsistencies found in and between
Directives especially on cross-sectoral issues
– providing greater clarity in the roles and
responsibilities of supervisors and
– converging practices of the three EU supervisory
committees (CESR, CEBS and CEIOPS)
3. Developing new structures if necessary
Issues to be further considered
Codification and possibly simplification of existing rules on
information requirements, in particular with a view to ensuring
consistency and coherence between different texts;
Financial mediation, in particular by allowing cross-border service
provision by knowledgeable and reliable intermediaries, while
applying full transparency on fees and relationships with providers.
Work has already been done in this area under the Insurance
Mediation Directive and the Markets in Financial Instruments
Directive. However, given developments in products and the
structure of financial providers, the need for further alignment of
rules on conduct of business, sales advice and disclosure should be
examined;
Bank accounts, in particular looking into obstacles to opening
accounts cross-border, as well as issues regarding their handling,
portability, transferability and closure. There appear to be particular
problems associated with, e.g. non-residency and identification
requirements.
“Exchange of Views” on Financial Services
Policy 2005-2010 Report
Is the European Commission addressing the right
priorities?
Are there areas where regulatory or supervisory steps
need to be filled or- on the contrary –where regulation
is obsolete and can possibly be withdrawn? And
Are initiatives suggested in the “Asset Management”
and “Retail Financial Services” areas the right way
forward?
“…so lets work together to build this
financial strength and the most vibrant
capital markets in the world. There is no
time to waste. But at least now, we are on
the right path”.
Charlie McCreevy, European Commissioner for Internal Market and
Services, commenting on the Green Paper, Brussels, 18.7.2005