06 July 2001

FESCO: Results on Consultation Paper on Harmonization of Conduct of Business Rules

-
FESCO is publishing the combined inventory of comments received on its proposed regime for investor protection. FESCO is now considering these comments and the extend of the amendments that may be necessary. The revised paper will be issued then for further consultation.

All comments raising the same concern were combined, unless they were based on different arguments. Comments follow the structure of the consultative document; those on “cold calling” and “grey markets” have been added at the end of the inventory. Some comments have not been included in the inventory; in particular:

many comments referred to the “home/host country” issue. These comments have not been included in the inventory, as they fall outside the immediate scope of the paper;

while the criteria adopted by FESCO for categorising investors were not under consultation, a number of consultees referred to this issue. Nonetheless, these comments have been partially included in the inventory to judge whether a right balance has been struck in the retail and professional regimes;

a number of responses referred to the need for “technological neutrality”, on the premise that laws and regulations should be technologically neutral in order to foster commercial innovation and competition. This principle is fully accepted by FESCO.

Almost all consultees supported the initiative of FESCO to harmonize conduct of business rules and welcomed the opportunity to comment on the proposals. Many comments (particularly those of the industry) referred to the need for a next round of consultation.

See full paper

© FESCO