COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 10.07.1997 
COM(97) 355 final 
95/ 0188 (COD) 
OPINION OF THE COMMISSION 
pursuant to Article 189 b (2) (d) of the EC Treaty, 
on the European Parliament's amendments 
to the Council's common position regarding the 
proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
amending Council directive 93/6/EEC 
on the capital adequacy of investment firms and 
credit institutions and Council directive 93/22/EEC on 
investment services in the securities field 
AMENDING THE PROPOSAL OF THE COMMISSION 
pursuant to Article 189 a (2) of the EC Treaty 

1. STAGE REACHED IN THE PROCEDURE 
a) On 17 July 1995 the Commission adopted a proposal1 for the above mentioned 
directive, the aim of which is to set up the Securities Committee. 
b) The European Parliament made a first reading of the proposal at its sitting on 9 
May 19962. 
c) On 20 June 1996 the Commission submitted an amended proposal3 in the light 
of Parliament's first reading opinion. 
d) On 16 December 1996 the Council adopted its common position4. 
e) On 9 April 1997 the European Parliament adopted its second reading opinion5, 
in which ten amendments are made to the common position. 
1 COM(95)360 final, OJ N° C 253, 29.9.1995, p. 19 
2OJN°C 152, 27.5.1996, p. 18 
3 COM(96)292 final, OJ N° C 221, 30.7.1996, p. 31 
4OJN°C69,5.3.1997,p. 1 
5 Text not yet published in the Official Journal 
£ 
2. POSITION TAKEN BY THE COMMISSION REPRESENTATIVE AT THE 
PLENARY SITTING 
The Commission representative accepted amendment N° 3 but rejected the other 
nine amendments. 
3. COMMISSION OPINION ON THE AMENDMENTS VOTED BY THE 
EUROPEAN PARLIAMENT 
a) Purpose of the amendments 
Amendment 1 (Recital 5) 
It deletes references to the advisory role of the Committee. 
Amendment 2 (Recital 6) 
This reflects Parliament's call for a change of committee procedure from variant Illb 
in the common position to variant lib (as laid down in the Council Decision 
87/373/EEC of 13 July 19876 laying down the procedures for the exercise of 
implementing powers conferred on the Commission). 
Amendment 3 (new Recital 6a) 
This adds a reference to the 1994 "modus vivendi" between the three institutions7. 
Amendment 4 (Recital 10) 
It deletes the reference to the need for co-operation between the Securities 
Committee and the Banking Advisory and Insurance Committees. 
Amendment 5 (Article 1) 
This amendment reverses the common position's objective of giving the Securities 
Committee the right to receive certain information under the Capital Adequacy 
Directive5. 
Amendment 6 ( Article 1) 
This amendment : 
• deletes the requirement for the Securities Committee to adopt its own rules of 
procedure 
6OJN°L 197, 18.7.1987, p. 33 
7OJN°C293,8.ll.l995,p. I 
8OJN°L 141, 11.6.1993, p. I 
• changes the type of committee procedure from variant Illb (in the common 
position) to lib for the exercise of implementing powers conferred on the 
Commission under the Capital Adequacy Directive. 
Amendments 7 and 10 (Articles 1 and 2) 
These two amendments delete the common position wording under which the 
Securities Committee is given a consultative role. 
Amendment 8 ( Article 2) 
This amendment reverses the common position's objective of giving the Securities 
Committee the right to receive certain information under the Investment Services 
Directive9. 
Amendment 9 
This amendment changes the type of committee procedure from variant Illb (in the 
common position) to lib for the exercise of implementing powers conferred on the 
Commission under the Investment Services Directive. 
b) Commission position 
Amendments 2, 6 and 9 
The Commission cannot accept these amendments. It considers that the most 
appropriate type of committee procedure for exercise of the implementing powers 
under the Capital Adequacy Directive and the Investment Services Directive is 
variant 111(a). It considers that variant 111(b) (the Council's preference) gives too 
much power to the Council to block decisions. On the other hand, variant 11(b) (the 
Parliament's preference) envisages the taking of decisions on an emergency basis, 
which is inappropriate for technical modification of financial services directives. 
Procedure type Ilia is the most appropriate solution and represents the correct 
balance between the extreme positions of the Council and the Parliament. 
As regards the Committee's need to adopt its own rules of procedure (amendment 6) 
the rules of procedure will have no impact on the role of the Committee in the 
comitology field : they will only apply to the work of the committee acting in a 
consultative mode. In this respect it should be borne in mind that the directive 
setting up the Insurance Committee contains an identical requirement. 
Amendments 1, 7 and 10 
These three amendments are not acceptable, because they would eliminate the 
advisory role of the Committee. This however is an essential element of the 
proposal, because the Securities Committee will represent a useful discussion forum 
which the Commission can decide (but is not obliged) to consult when it is 
envisaging possible new initiatives. 
OJ N° I. 141, 11.6.1993, p. 27 
It should be borne in mind that both the Banking Advisory Committee and the 
Insurance Committee have been given an advisory role in addition to a 
"comitoiogy" role. 
Amendment 3 
The Commission can accept this amendment, which it had indeed included 
expressly in its amended proposal following Parliament's first reading opinion. 
Amendment 4 
This amendment deletes reference to co-operation between the Securities 
Committee and the other two financial services committees i.e. the Banking 
Advisory Committee and the Insurance Committee. 
The Commission cannot accept this amendment because issues frequently arise 
which are of common interest to financial services firms in two or even all three 
sectors, and it appears only sensible to consult all three committees in a concerted 
manner when that situation arises. 
Amendments 5 and 8 
These two amendments are not acceptable, because the two basic directives (the 
Capital Adequacy Directive and the Investment Services Directive) were drafted in 
such a way that as and when the Securities Committee was created the latter would 
be supplied with certain information arising under the two directives. It was only on 
a purely temporary basis that this information was to be given to the Council itself, 
(see for example article 7(1) of the Investment Services Directive). Once the 
Securities Committee has been set up it in a necessary and logical step to replace the 
previous temporary regime with the permanent one. 

ISSN 0254-1475 
COM(97) 355 final 
DOCUMENTS 
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