Transcript Accession Country Perspective on EU Legislative and

Accession Country Perspective on EU
Legislative and Regulatory Requirements
Márta Klemencsics
Director General
Ministry of Finance
Hungary
Creating regulatory framework in Hungary
“Permanent adaptation” of EU rules in early
‘90s in an environment of
– stable legal framework on EU level
– quick transformation of our markets
Legislation was driven by the development of
Hungarian markets
Major steps in banking legislation
• 1991 the first Banking Act
• 1993 Act on National Deposit Insurance
Fund
• 1996 Act on Credit Institutions
• 2000 latest amendment  full
harmonisation
Major steps in capital markets and investment
services legislation
• 1990 Securities Act
• 1991 Act on Investment Funds
• 1994 Act on Commodities Exchange included also regulation of Central
Clearing House and Depositary
• 1996 Securities Act
• 2001 Capital Market’s Act almost full
harmonisation
One exception: settlement finality
Adoption of acquis still not complete
New directives:
• Electronic money institutions
• Winding up of credit institutions
Harmonisation by the time of accession
New EU approach
1999 Financial Services Action Plan
(FSAP) aimed at creating a single
market for financial services by
removing the remaining obstacles
deadline: 2005
FSAP
3 priorities
• Single EU wholesale market
• Open and secure retail markets
• State of the art prudential rules and
supervision
• General objectives in - taxation and
- corporate governance
• 43 actions
Lámfalussy report adopted 2001
February
• Setting priorities
• Transparency and consultation in legislative
process
• flexibility
Flexibility of legislation
4 level system
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Level 1
Level 2
Level 3
Level 4
framework directives
detailed implementation rules
consistent implementation
enforcement
European Securities Committee (ESC)
Committee of European Securities Regulators (CESR)
Result of the implementation of Lámfalussy
procedures:
New directives:
– 2 UCITS
2001/107
2001/108
– Financial collaterals 2002/47
Approved proposals:
– market abuse
– prospectus
• Financial conglomerates
• Distance marketing of financial services
Further work is going on
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ISD
capital adequacy rules
takeover rules
IAS
consumer credit
Proposed :
Extention of Lámfalussy procedures to banking and
insurance
 Acquis changes in almost all elements
 further harmonisation is driven by the permanently
changing legal environment
Problems
• Few information on the work in the pipeline
• No experience available from Member States
• Requirement to adopt the effective rules even if we
know it’s going to change
» Extra work
» Permanent changes disturb markets
Preparing for membership
New approach
Instead of following EU legislation by adopting
the acquis, actively participate in preparatory
work
– Working groups of Commission
– Expert groups
– Working parties
– BAC, ESC, IC
The need to set up appropriate structures
Role of associations
Extensive consultations between authorities and
industries