29 January 2004

Bolkestein speech on the lessons of the FSAP

In an address at Edinburgh Finance and Investment Seminar in Edinburgh Commissioner Bolkestein reviewed the progress on the Financial Services Action Plan, noting that 37 of the 42 measures have been finalised and the Irish Presidency will hopefully finalize the outstanding proposals such as the Directives on Investment Services and Transparency.

In his concluding remarks, Mr Bolkestein also noted that “meshing together regulatory and supervisory systems will entail transitional costs and changes to 'business as usual'. Market participants cannot expect the collective rule-making process to result in the replication of their national regime at EU level.”

Referring to the remaining EU-legislation framework, the Commissioner mentioned, that:

work on a new Basel Accord can be completed by mid-2004 and a proposal for a directive will be published shortly afterwards.

A proposal for a Solvency II framework is scheduled for early 2005.

the Commission's forthcoming proposal on statutory audit will address some of the failures which have characterised recent corporate scandals.

the Commission is trying to find a viable solution on IAS 39. Failure could have significant consequences for our long-term objective of facilitating the emergence of a global financial reporting standard, the Commissioner said.

Full speech

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