23 September 2005

Speech McCreevy: Financial services in Europe today

On the occasion of meeting of the Irish Association of Investment Managers in Dublin Commissioner McCreevy stated that a number of controversial outstanding issues in the MiFID Directive on which agreement must still be reached and pointed out that much of the criticism of some of the proposed implementing measures comes from markets which stand to benefit most from this legislation.

“Everyone must recognise that market opening measures have up-front implementation costs” he said. “There are however political realities here which the industry must face up to: There are 25 Member States to be brought on board- Compromise is inevitable and rarely will the end result be exactly as you or I might like it” he continued.

With regard to clearing and settlement he criticized that the industry has not been quite as good in making progress in solving some of the problems already highlighted by the Giovannini Group. “Nobody can justify the current levels of cross-border costs” he said. “The market should take the lead in achieving consolidated structures”, the Commissioner continued.

Although he pledged for a market driven solution he stated that the Commission will have to play its part by providing the appropriate environment for consolidation to be a real option. “As long as the appropriate regulatory, supervisory and competition policy safeguards are established, I remain neutral as regards the degree and form of consolidation that the market may adopt”, McCreevy added.

Full speech

© European Commission