Brussels, 21/09/2007 (Agence Europe) - The European Commission is considering whether new legislation is needed to improve the quality of information and financial intermediation in the retail banking industry. It will be launching a vast consultation exercise on the issue in October in order to poll stakeholders. At a public hearing on financial services organised by the Commission in Brussels on Wednesday 19 September, EU Internal Market Commissioner Charlie McCreevy explained that: 'In the EU, the quality of investor disclosure and of financial distribution has not kept pace with the complexity and range of retail investment products.' He said he believed 'there is now a strong prima facie case to investigate these issues more thoroughly. To examine whether there is a need for intervention to raise the quality of product disclosure and financial intermediation across the board…. I will publish a call for evidence in October.'
Charlie McCreevy mentioned the results of an initial consultation in April 2007 when the Green Paper on Retail Financial Services was published (see EUROPE 9417): 'It is clear from the consultation process that almost all of you believe that retain markets will remain essentially local for the foreseeable future, due mainly to language, culture and familiarity of consumers with local providers and rules.' The Commissioner explained that later this year, he would be publishing a communication on consumer financial education. (mb)