ECOFIN results

27 March 2007




Key items for Financial Services

Prudential Assessment of Acquisitions in the Financial Sector

The Council also reached political agreement.
The draft directive modifies the current framework considerably, setting out a procedure to be applied as regards notification and decision-making. Deadlines are reduced, and any 'stopping of the clock' by the competent authorities is limited to one occasion and subject to clear conditions.

The text sets out the following prudential criteria for supervisory assessments, to be applied in all member states: the reputation of the proposed acquirer; the reputation and experience of any person that may run the resulting institution or company; the financial soundness of the proposed acquirer; on-going compliance with relevant directives; the level of risk of money laundering and terrorist financing.

It approved a global compromise as adopted by the European Parliament in first reading after negotiations under the Parliament-Council codecision procedure. The Council will adopt the directive at a forthcoming meeting, after finalisation of the text.

Directive on Payment Services in the Internal Market

The Council approved a general approach.

The Council's agreement is based on a proposal by the presidency involving a compromise on the following main issues.

  • capital requirements for payment institutions;
  • activities that payment institutions may undertake, in particular the granting of credit;
  • the possibility of waiving application of certain provisions for smaller payment institutions;
  • the possibility of waiving application of certain provisions for certain instruments used primarily for the payment of small amounts (low-value payments).

    The Council's general approach will be used as the basis for adopting the directive in first reading, under the Parliament-Council codecision procedure.

    Press release on SEPA
    Press release on Prudential Assessment
    Full agenda
    Background note


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