CESR Final Report on Common Implementation of Cold Calling Standards

03 January 2006

The Committee of European Securities Regulators (CESR) released its final report undertaken by the Review Panel on the Common Implementation Review of CESR’s Cold Calling Standards. CESR decided to conduct a common review of the implementation of the Investor Protection Standards related to Standards 18 to 24 on cold calling, establishing a sub-group, which has been working on defining the additional assessment criteria to be used.

Given possible incompatibilities between CESR Rule 24 on cold calling and the Distance Marketing Directive, the implementation of that Rule was not assessed. The group checked to what extent these Standards have been affected by the EU Directive on distance marketing of consumer financial services. The group also considered the work undertaken by CESR at Level 2 under the MiFID concerning, in particular, the issue of tied agents as provided for in Standard 19 in the review.

Furthermore, the Review Panel has taken note that the inclusion of areas such as compliance and internal control mechanism would be crucial for the assessment of practical implementation. At the same time the thin line between the mandate of CESR at Level 3 and the Commission’s prerogative rights relating to MiFID Level 1 and 2 measures has to be emphasised.

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