09 February 2001

Commission Communication on E-commerce and Financial Services

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The communication meets the immediate concerns expressed by a number of member states by providing clarification of the e-commerce directive's impact. It takes a closer sectoral look at how the directive will apply to the cross-border trade of on-line financial services specifically and what changes are necessary to establish a fully integrated European financial services market (see the press release for a short description).

The approach outlined in the commission communication will be based on the principle that the trading rules applied to the cross-border sale and the purchase of financial services should be those of the member state where the service provider is established (i.e. the country of origin). This should ensure a level playing field between on-line and more traditional modes of distance trade. Underpinning the strategy is a series of measures designed to enhance consumer confidence and protection, including further harmonisation of national consumer and investor protection rules, the establishment of out-of-court redress, measures to build trust in internet payments and enhanced cooperation between public authorities responsible for the supervision of cross-border trade in financial services. The communication also takes full account of the need to protect consumers and retail investors operating on-line within the union.

© European Commission