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20 October 2006

EFR comments on revision of EU directives concerning supervisory issues





In a letter to the Commission the EFR welcomes Commission’s proposal on the new rules and criteria for the supervisory approval process for mergers and acquisitions. EFR criticizes that current European rules make it possible for supervisors to prevent acquisitions of local banks for the only reason of protection of domestic institutions and existing market infrastructures. EFR therefore calls for further convergence and cooperation between EU supervisors.

The EFR regrets that the current proposal does not provide greater guidance on the respective responsibilities of the acquirer and target supervisors in an intra-EU takeover, particularly as regards potentially subjective criteria such as reputation.

Letter


© EFR - European Financial Services Round Table


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