Speech McCreevy: Financial regulation, integration and competitiveness

17 October 2005

Speaking at the Central Bank of Ireland in Dublin Commissioner McCreevy outlined some points of the Commission White Paper to be published in November, concentrating on regulatory and supervisory issues. The Commissioner criticised that on a cross-border basis, the supervisory approval process in many Member States is often long, cumbersome and opaque. “I cannot see why an institution which has been authorised in one Member State cannot be authorised elsewhere in the EU” McCreevy said.

“The Commission’s White Paper will underscore the importance of supervisory convergence and of the reduction of compliance costs for firms operating in several Member States. Concrete tools must be delivered for cost-effective supervision of cross-border groups.

“The White Paper will therefore outline a strategy to foster greater integration of retail markets. Consumer credit, mortgages, and asset management are three areas where more harmonization should prove fruitful.”

“My appeal to you today is when regulating to give due weight to the need to strike the right balance between prudential and investor protection considerations and the need for competitiveness and innovation in financial services. Don’t try to protect everyone from every possible accident. Concentrate on the big things that really matter. And leave industry with the space to breathe and investors with the freedom to learn from their mistakes. “

Full speech

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