.** 
* -tfr COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 19.04 19% 
COM(%) 172 linal-
94/0242 (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 
ON CROSS-BORDER CREDIT TRANSFERS 
AMENDING THE PROPOSAL OF THE COMMISSION 
pursuant to Article 189 a (2) of the EC Treaty 

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 
ON CROSS-BORDER CREDIT TRANSFERS 
I. STAGE REACHED IN THE PROCEDURE 
(a) On 18 November 1994, the Commission adopted a proposal for a European 
Parliament and Council Directive1 on cross-border credit transfers. This was sent 
to the Council by letter dated 18 November 1994. The Council subsequently 
forwarded this text to the European Parliament, to the European Monetary 
Institute and the Economic and Social Committee. In January 1995, it began its 
own examination of the proposal. 
(b) The European Monetary Institute (EMI) rendered its opinion on the Commission 
proposal on 20 March 1995. 
The Economic and Social Committee adopted its opinion at its sitting on 1st 
June 19952. 
(c) The European Parliament adopted the legislative resolution embodying its 
opinion on the Commission proposal at its sitting on 19 May 19953. 
(d) On 6 June 1995, the Commission adopted an amended proposal4 in the light of 
the consultations of Parliament, the European Monetary Institute and the 
Economic and Social Committee. It was sent to Council by letter of 7 June 1995. 
(e) On 4 December 1995 the Council adopted the common position5. It introduced a 
number of amendments to the Commission's amended proposal; in particular it 
rejected 3 out of the 19 amendments inserted in the amended proposal. 
(f) In the plenary session of 14 December 1995, the President of the Parliament 
announced receipt of the Common Position. 
(g) On 13 March 1996, the European Parliament adopted unanimously 14 
amendments to the Common Position6. 
In accordance with the procedure described in Article 189g(2)(d) of the EC Treaty, the 
Commission has to deliver an opinion on these amendments. 
1 OJ No C 360, 17.12.1994, p. 13. 
2 OJ No C 236, 11.09.1995, p. 1. 
3 OJ No C 151, 19.06.1995, p. 370. 
4 OJ No C 199, 03.08.1995, p. 16. 
5 OJ No C 353, 30.12.1995, p. 52. 
6 Text not yet published in the Official Journal. 
A 
II. POSITION TAKEN BY THE COMMISSION REPRESENTATIVE AT THE PLENARY SI TUNC. 
The European Parliament proposed 14 amendments to the text of the Common Position 
of the Council. The Commission representative accepted amendments 1, 2, 3, 4, 5, 6, 7, 
8, 9, 11 and 14 practically as they stand. Furthermore, the Commission accepted 
amendments 10 and 12 partially or subject to modifications. The Commission 
representative did not accept one amendment, i.e. amendment n° 13. 
III. THE COMMISSION OPINION ON AMENDMENT N° 13 VOTED BY THE EUROPEAN 
PARLIAMENT 
Amendment n°13, introducing a new paragraph 2 to Article 10 of the Common 
Position of the Council 
The purpose of the amendment is twofold : 
• to state that access to redress and complaints procedures shall occur where a 
complaint has not been remedied or a decision has not been taken on it by the 
institution concerned within four weeks after the first complaint: 
• to ensure that a list of addresses be available at all institutions carrying out cross-
border credit transfers. 
As to the first, the Commission considers that a harmonised maximum deadline would 
not suit customers' needs for rapid redress under the different articles and might also be 
in conflict with similar deadlines contained in other provisions of the Directive, e.g. 
that in Article 8. As to the second, it is already satisfied by a similar requirement under 
the penultimate indent of Article 3. 
For the reasons outlined* the Commission cannot accept this amendment 
Common Position of the Council Amendment by Parliament 
(Amendment 13) 
Article 10(2) (new) 
2* If a complaint has not been remedied 
or a decision has not been taken on it 
within four weeks after the first 
complaint. complainants may 
approach one of the complaint and 
redress offices to be set up for this 
purpose, or may use existing 
procedures where available. 
A list of addresses of such offices 
shall be available at all institutions 
carrying out cross-border credit 
transfers under this Directive. 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE 
ON CROSS-BORDER CREDIT TRANSFERS 
(presented by the Commission pursuant to Article 189a(2) of the EC Treaty 
Amended proposal for a 
EUROPEAN PARLIAMENT AND COUNCIL DIKKCTIVI 
ON CROSS-BORDER CREDIT TRANSFERS 
Amendment n°l concerning Recital n°2 of the Common Position 
The amendment aims to insert a spécifie reference to the definitive Commission 
Notice on the application of the HC competition rules to cross-border credit transfer 
systems7, a draft of which had been issued alongside the Commission's initial 
proposal for a European Parliament and Council Directive on cross-border credit 
transfers. 
The insertion aims to highlight the fact that, in conformity with the Commission's 
Notice, greater competition in the market for cross-border credit transfers should 
lead to improved services and reduced prices. Therefore, the Commission accepts 
this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 1) 
Recital 2 
(2) Whereas it is of paramount 
importance for individuals and 
businesses, especially small and 
medium-sized enterprises, to be able 
to make credit transfers rapidly, 
reliably and cheaply from one part of 
the Community to another; whereas 
greater competition in the market for 
cross-border credit transfers should 
lead to improved services and 
reduced prices; (2) Whereas it is essential for individuals 
and businesses, especially small and 
medium-sized enterprises, to be able 
to make credit transfers rapidly, 
reliably and cheaply from one part of 
the Community to another; whereas, 
in conformity with the Commission 
Notice on the application of the EC 
competition rules to cross-border 
credit transfers, greater competition 
in the market for cross-border credit 
transfers should lead to improved 
services and reduced prices; 
OJ No C 251, 27.09.1995, p. 3. 
S 
2. Amendment n°2 to Recital n° 7 of the Common Position of the Council 
Recital n°7 relates to the scope of application of the Directive. Therefore, this 
amendment needs to be considered in conjunction with amendment n°5 to Article 1 
of the Common Position. 
As such, it points to an enlargement of the Directive's application, by establishing 
that transfers of an amount less than ECU 50.000 are covered. This amendment is 
in keeping with the Commission's fundamental conviction that as high a threshold 
would better serve the objective of creating a fully functioning Internal Market for 
cross-border credit transfer services. Therefore, the Commission accepts this 
amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 2) 
Recital 7 
(7) Whereas, in line with the objectives (7) Whereas, in line with the objectives 
set out in the second recital, this set out in recital 2, this Directive 
Directive should apply to any credit should apply to any credit transfer of 
transfer of an amount less than an amount of less than ECU 50.000: 
ECU 25.000: whereas that amount whereas institutions should be under 
should be increased to ECU 30.000 an obligation to refund in the case of 
two years after the final a non-completed transfer; 
implementation dale. for this 
Directive; 
é 
Amendment n°3 concerning Recital n° 11 of the Common Position of the 
Council 
This recital relates to Article 8 of the Common Position on the refund of non-
completed cross-border credit transfers and must therefore be read in conjunction 
therewith (and amendments n" 8 and 9 thereto). 
It aims to increase the minimum level of the refund to the amount of ECU 20.000, 
thus improving the customer's situation; the increase is however deemed not to 
have a prejudicial effect on solvency requirements. Therefore the Commission 
accepts this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 3) 
Recital 11 
(11) Whereas there should be an 
obligation upon institutions to refund 
in the event of non-execution of a 
credit transfer; whereas the 
obligation to refund imposes a 
contingent liability on institutions 
which might, in the absence of a 
limit, have a prejudicial effect on the 
solvency requirement; whereas that 
obligation to refund should therefore 
be applicable to ECU 10.000: (11) Whereas there should be an 
obligation upon institutions to refund 
in the event of a failure to 
successfully complete a credit 
transfer; whereas the obligation to 
refund imposes a contingent liability 
on institutions which might, in the 
absence of any limit, have a 
prejudicial effect on solvency 
requirements; whereas that 
obligation to refund should therefore 
be applicable to ECU 20.000; 
? 
4. Amendment n° 4 concerning Recital n° 14a (new) of the Common Position of 
the Council 
This new recital relates to Article 10 on the settlement of disputes and, being 
intended as a match to the proposed amendment n° 12 to that Article, should be 
read in conjunction therewith. 
It aims to clarify in more detail the scope of Member States' responsibility to ensure 
that adequate and appropriate procedures exist to deal with customer's complaints 
relating to areas covered by the Directive. Therefore, the Commission accepts this 
amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 4) 
Recital 14a (new) 
(Ha) Whereas adequate and appropriate 
complaints and redress procedures 
relating to the areas covered by 
this Directive should be available 
to afford the customer better 
protection. using existing 
procedures where available. 
5. Amendment n° 5 to Article 1 of the Common Position of the Council 
Amendment n° 5 relates to the scope of application of the Directive. It points to an 
enlargement of the Directive's application, by establishing that transfers of an 
amount less than ECU 50.000 are covered. 
This amendment is in keeping with the Commission's fundamental conviction that 
as high a threshold would better serve the objective of creating a fully functioning 
Internal Market for cross-border credit transfer services. Therefore, the 
Commission accepts this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 5) 
Article 1 
1. The provisions of this Directive shall 
apply to cross-border credit transfers 
ordered by persons other than those 
covered by Article 2(a), (b) and (c) 
and executed by credit institutions 
and other institutions. 1. The provisions of this Directive shall 
apply to cross-border credit transfers 
in the currencies of the Member 
States and the ECU up to the 
equivalent of ECU 50.000 ordered by 
persons other than those referred to 
in Article 2(a), (b) and (c) and 
executed by credit institutions and 
other institutions. 
Until two years after the date of Deleted. 
implementation of this Directive, this 
Directive shall apply to cross-border 
credit transfers in the currencies of 
the Member States and in ECUs of 
amounts less than ECU 25.000. After 
that date, this Directive shall apply to 
cross-border credit transfers in the 
currencies of the Member States and 
in ECUs of amounts less than 
ECU 30.000. 
5 
6. Amendment n° 6 to Article 3 of the Common Position of the Council 
This amendment relates to Article 3 on prior information on conditions for cross-
border credit transfers. 
While most articles of the Directive refer to obligations falling directly on 
institutions, Article 3 lays down obligations on Member States. Coherently with the 
Commission's initial and amended proposals, the amendment aims to streamline the 
text of the Common Position, by setting out that the transparency requirements of 
Article 3 fall directly on institutions. Therefore, the Commission accepts this 
amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 6) 
Article 3, introduction 
Member States shall ensure that 
institutions make available to their 
actual and prospective customers in 
writing, including where appropriate 
by electronic means, and in a readily 
comprehensible form, information on 
conditions for cross-border credit 
transfers. This information shall 
include at least : The institution shall make available 
to their actual and prospective 
customers in writing, including 
where appropriate by electronic 
means, and in a readily 
comprehensible form, information on 
conditions for cross-border credit 
transfers. This information shall 
include at least : 
s* 
7. Amendment n° 7 to Article 4 of the Common Position of the Council 
This amendment relates to Article 4 on information subsequent to a cross-border 
credit transfer 
While most articles of the Directive refer to obligations falling directly on 
institutions, Article 4 lays down obligations on Member States. Coherently with the 
Commission's initial and amended proposals, the amendment aims to streamline the 
text of the Common Position, by setting out that the transparency requirements of 
Article 4 fall directly on institutions. Therefore, the Commission accepts this 
amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 7) 
Article 4, introduction 
Member States shall ensure that 
institutions supply their customers, 
unless the latter expressly forgo this, 
subsequent to the execution or receipt 
of a cross-border credit transfer, with 
clear information in writing, 
including where appropriate by 
electronic means, and in a readily 
comprehensive form. This 
information shall include at least : The institution shall supply their 
customers, unless the latter expressly 
forgo this, subsequent to the execution 
or receipt of a cross-border credit 
transfer, with clear information in 
writing, including where appropriate 
by electronic means, and in a readily 
comprehensive form. This 
information shall include at least : 
S* 
8. Amendment n° 8 to Article 8(1), first sub-paragraph of the Common Position 
of the Council 
Amendment n° 8 relates to Article 8(1) of the Common Position on the refund of 
non-completed cross-border credit transfers. 
It aims to increase the minimum level of the refund to the amount of ECU 20.000, 
thus improving the customer's situation; the increase is however deemed not to 
have a prejudicial effect on solvency requirements. Therefore the Commission 
accepts this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 8) 
Article 8(1), first subparagraph, introduction 
1. If, after a cross-border credit transfer 1 
order has been accepted by the 
originator's institution, the relevant 
amounts are not credited to the 
account of the beneficiary's 
institution, without prejudice to any 
other claim which may be made, the 
originator's institution shall credit the 
originator up to ECU 10.000. with 
the amount of the cross-border credit 
transfer plus : If, after a cross-border credit transfer 
order has been accepted by the 
originator's institution, the relevant 
amounts are not, for any reason, 
credited to the account of the 
beneficiary's institution, without 
prejudice to any other claim which 
may be made, the originator's 
institution shall credit the originator 
up to ECU 20.000. with the amount 
of the cross-border credit transfer 
plus : 
>**-
9. Amendment n° 9 to Article 8(2) of the Common Position of the Council 
Amendment n° 9 relates to Article 8(2) of the Common Position on the refund of 
non-completed cross-border credit transfers because of non-execution by an 
intermediary institution chosen by the beneficiary's institution. 
In coherence with amendment n° 8, its aim is to set the minimum level of the 
refund at ECU 20.000. In the absence of this amendment, Article 8(2) would not 
contemplate any explicit limitation on the level of the refund. Therefore, the 
Commission accepts this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 9) 
Article 8(2) 
2. By way of derogation from 
paragraph 1, if the cross-border 
credit transfer was not completed 
because of its non-execution by an 
intermediary institution chosen by 
the beneficiary's institution, the latter 
institution shall be obliged to make 
the funds corresponding to the 
amount of the transfer available to 
the beneficiary. 2. By way of derogation from 
paragraph 1, if the cross-border 
credit transfer was not completed 
because of its non-execution by an 
intermediary institution chosen by 
the beneficiary's institution, the latter 
institution shall be obliged to make 
available to the beneficiary the funds 
up to ECU 20.000. 
15 
10. Amendment n° 10 to Article 8(3), second sub-paragraph of the Common 
Position of the Council 
Amendment n° 10 relates to Article 8(3) which deals with situations where the 
inability to successfully execute a transfer is attributable to defective customer 
information or to a mistake by an intermediary institution chosen explicitly by (he 
originator. 
The amendment aims to specify that when the institution succeeds in recovering the 
funds and thereby in refunding the originator, it is not obliged to refund the charges 
and interest accruing and may deduct the costs arising from the recovery if proved. 
Save for the terms "if proved", the amendment is in line with both the text of the 
Common Position and the Commission's thinking, according to which the 
originator's institution should not be held responsible for its customers' mistakes. 
On the other hand, the terms "if proved" would require the institution concerned to 
justify deducting costs for the recovery of funds. 
Therefore, except for and subject to the elimination of the terms "if proved". 
the Commission accepts this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 10) 
Article 8(3), second subparagraph 
Where the amount has been 
recovered by the originator's 
institution, it shall credit it to the 
originator subject to any deduction of 
costs arising from the recovery. Where the amount has been 
recovered by the originator's 
institution, it shall credit it to the 
originator. The institutions are not 
obliged in this ease to refund the 
charges and interests accruing, and 
can deduct the costs arising from the 
recovery if proved. 
Text of Parliament's amendment 
as modified 
Where the amount has been 
recovered by the originator's 
institution, it shall credit it to the 
originator. The institutions are not 
obliged in this case to refund the 
charges and interests accruing, and 
can deduct the costs arising from the 
recovery. 
yiH 
11. Amendment n° 11, introducing a new Article 8(3a) to the Common Position of 
the Council 
Amendment n° 11 aims to lay down explicitly an option for Member States and/or 
institutions to provide for a refund for amounts exceeding the minimum level set 
out in Article 8, paragraphs 1 and 2. 
The Commission is of the opinion that this amendment provides useful clarification 
as to the extent of Member States' and institutions' rights under the Directive. 
Therefore, the Commission accepts this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 11) 
Article 8(3 a) (new) 
2& Without prejudice to paragraphs 1 
and 2, Member States and/or 
institutions which participate in the 
execution of cross-border transfers 
may provide that refunds be made of 
a non-completed cross-border credit 
transfer, where the amount exceeds 
ECU 20.000. 
JÎ 
12. Amendment n° 12 to Article 10 of the Common Position of the Council 
This amendment aims to better qualify the scope of Member States' responsibility 
to ensure that adequate and appropriate procedures exist to deal with customers' 
complaints relating to the areas covered by the Directive. On the other hand, the 
Commission is of the opinion that drafting adjustments to the text of the 
amendment may be necessary, to ensure consistency with the terminology of the 
Common Position. The amendment may be redrafted as indicated below: 
Therefore, subject to such modification, the Commission accepts this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 12) 
Article 10 
Member States shall ensure that there are L Member States shall ensure that there 
adequate and effective means for the 
settlement of possible disputes between an 
originator and his institution or between a 
beneficiary and his institution. are adequate and appropriate 
complaints and redress procedures 
relating to the areas covered by this 
Directive available to afford the 
customer better protection, using 
existing procedures where available. 
Text of Parliament's amendment 
as modified 
"Member States shall ensure that 
there are adequate and effective 
means for the settlement of disputes 
between a customer and ils 
institution, using existing procedures 
where appropriate." 
yfé 
14. Amendment n° 14 relating to Article 11, first sub-paragraph of the Common 
Position of the Council 
Amendment n° 14 aims to reduce the deadline for implementation of the Directive 
to 18 months alter the date the Directive enters into force. 
This amendment is in keeping with the Commission's objective of ensuring that the 
Directive is implemented within a reasonably short time. Therefore, the 
Commission accepts this amendment. 
Common Position of the Council Amendment by Parliament 
(Amendment 14) 
Article 11(1), first subparagraph 
Member States shall bring into force 
the laws, regulations and 
administrative provisions necessary 
to comply with this Directive by ...* 
at the latest. They shall forthwith 
inform the Commission thereof. Member States shall bring into force 
the laws, regulations and 
administrative provisions necessary 
to comply with this Directive by ...* 
at the latest. They shall forthwith 
inform the Commission thereof. 
* Thirty months after the date this 
Directive enters into force. * Eighteen months after the date 
this Directive enters into force. 
^ 
ISSN 0254-1475 
COM(96) 172 final 
DOCUMENTS 
EN 09 10 
Catalogue number : CB-CO-96-182-EN-C 
ISBN 92-78-03010-4 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
ji