Brussels, 26/01/2005 (Agence Europe) - At the 3rd European conference on financial services, Martin Power, Head of Cabinet of Commissioner Charlie McCreevy, said that the European Commission was planning to publish in May this year a Green Paper on the future of the Action Plan on Financial Services (APFS). The Green Paper, he said, would not be identical to the APFS, but neither would it be a new legislative programme. It would aim to set out priorities for the next five years. Martin Power reassured industry representatives calling for a 'ceasefire in legislation', pointing out that Charlie McCreevy said on 24 January that in the spring, he would be unveiling plans to amend the recent directive on the market for financial instruments.
Martin Power said the time had come to consolidate, implement and conclude the Financial Services Action Plan. He said it was too soon to assess its impact in any detail, but integration and restructuring of the financial services market has already begun, and there is greater competition and a bigger range of financial products available. The European Commission will be consulting industry and further moves and making prior impact studies ahead of any new legislation. At the international level, talks with the United States, Japan and China will continue to reach global convergence of financial regulations.
Martin Power outlined the three areas the European Commission would be focussing on, namely payment and payment on delivery systems; asset management; and retail financial services.
Payment and payment on delivery systems are necessary post-sales operations for transferring ownership and payment of a security between buyer and seller. The Commission believes it is both possible and desirable to cut costs in this area. An impact study is currently being carried out that will conclude in the second half of the year and will be used in any decision on whether to legislate.
On asset management, the Commission believes the 1995 regulations are no longer sufficient for the current market situation and a new strategy, based on the assessment of priorities expected in the second half o 2005, therefore seems necessary.
The Commission will try to ensure greater integration of financial services to private customers and will be publishing a Green Paper on mortgages.
Much as it has done for banking, the Commission is planning to unveil legislation at the start of 2006 on own resources in the insurance industry. The European Committee of Insurance and Professional Pensions Controllers is in the process of drafting a framework directive.
Speaking at the conference, MEP Ieke Van den Burg (PES, the Netherlands) outlined the three priorities from her own initiative report for the European Parliament on the Action Plan on Financial Services, namely strengthening the 'Lamfalussy Procedure' in financial services; assessing existing legislation; and retail financial services. She said she preferred to see a reworking of the balance of power at European level compared with national regulators, but said that it would take time for this idea to become acceptable.