12 September 2002

Exchange of views with Commissioner Bolkestein in EMAC Committee

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Commissioner Bolkestein today gave an overview about the progress on the Financial Services Action Plan to EMAC. He stated that “Confidence in financial markets is based on common rules, investor protection, and disclosure standards, to which the Financial Services Action Plan is a blueprint”. Conversations on regulatory issues between the EU and the US are necessary and ongoing. These issues will be discussed at the meeting with Mr Pitt, President of the US Securities and Exchange Commission (SEC) on 10 October in Brussels.

With regard to the extension of the Lamfalussy procedure to the banking and insurance sector and the role of the European Central Bank (ECB), Mr Bolkestein stated that European institutions like the European Financial Committee (EFC) and ECOFIN are right in the middle of studying the subject and a decision has not jet been made.

The Commissioner also pointed out that the Commission should retain its role within the procedure, in particular as the chair of the European Securities Council (ESC). As ECOFIN wants a Member State Official as a chair (see ECOFIN paper on ‘EC arrangements for financial regulation, supervision and stability’, 24 July ), Mr Bolkestein insisted that the rights of the Commission and the European Parliament must be respected ( see Commission statement of 03 September ).

With regard of the role of the ECB the Commissioner explained that the national Central Banks play their role in the oversight of national banks. The ECB sees its role in this issue, but the concrete definition is still under discussion.

Finally with regard to the Taxation of Savings Income Directive Mr Bolkestein said that the discussions with the Swiss delegation are right under way. What the EU expects is an “equivalent to an automatic exchange of information”. The Discussions are still under way but he expects to come to a final arrangement at the end of this year.

© Graham Bishop