ESC: Summary records of July Meeting

25 August 2004

The Commission published the summary records of the European Securities Committee (ESC) meeting of 5 July 2004. On the Clearing and Settlement issue many delegations called for a cost benefit analysis for the discussion of any legislative proposal. The Commission services replied with respect to the envisaged Directive in that field an extensive ex-ante impact analysis will take place.

The functional approach adopted in the communication was generally approved. The idea of a Directive in this field was welcomed. Nevertheless a balance will have to be established between a regulatory and a market-led approach.

Certain delegations considered that direct access to CSDs by retail investors should be included in forthcoming analysis of clearing and settlement by the Commission. The issue of definitions should also be aligned to the ones provided by CPSS-IOSCO.

Concerning the CESR/ESCB standards delegations agreed that they could be a basis for future legislation. Careful assessment should take place in order to establish whether they are appropriate/coherent with any level 1 and level 2 measures.

On Credit rating agencies, the Commission proposed to receive the advice from CESR by mid-December 2004, in order to be in a position to prepare a Commission’s assessment by July 2005.

Other points of discussion included UCITS, the follow-up of Parmalat, and the level 4 of the Lamfalussy process

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