P6_TA(2006)0271

MIFID draft implementing measures

European Parliament resolution on the MiFID draft implementing measures

The European Parliament,

- having regard to the draft directive and draft regulation of the Commission of 6 February 2006, implementing Directive 2004/39/EC [1] (respectively, Draft Implementing Directive and Draft Implementing Regulation),

- having regard to the informal drafts of the implementing measures transmitted to the Parliament since 6 February 2006,

- having regard to Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [2],

- having regard to the statement made to the Parliament by Commission President Romano Prodi on 5 February 2002 [3],

- having regard to its resolution of 5 February 2002 on the implementation of financial services legislation [4],

- having regard to Article 64 of Directive 2004/39/EC: the "sunset clause" provision,

- having regard to the proposed modifications of the draft implementing measures adopted by its Committee on Economic and Monetary Affairs on 30 May 2006,

- having regard to the Commission's answer to the proposed modifications, forwarded to the Parliament by letter of 9 June 2006, addressed to the rapporteur and to the Chairwoman of the competent committee,

- having regard to the outcome of the meeting of the European Securities Committee of 8 and 9 June 2006,

- having regard to the Council (Economic and Financial Affairs) conclusions of 5 May 2006, stressing the importance of supervision, coordination and convergence within the European Union,

- having regard to Rules 103(2) of its Rules of Procedure,

A. whereas Article 47 of the EC Treaty, which is the legal basis of Directive 2004/39/EC, makes no express provision for implementing measures; whereas the Parliament, bearing in mind the objectives of better regulation and enforcement on a truly level playing field for financial markets, generally supports the use of implementing measures,

1. Asks the Commission to take the utmost account of the limits on its powers conferred by Directive 2004/39/EC, in accordance with the applicable provisions of the EC Treaty, in order to ensure legal certainty for financial market players;

2. Points out that the draft implementing measures constitute a workable solution for achieving the objectives of improved operating conditions for investment firms and other trading bodies as well as of efficient, transparent and secure financial markets in the EU;

3. Stresses that the work undertaken by Parliament since the publication of the implementing measures has been stimulated by the need to respect those legislative provisions aimed at achieving a balanced outcome between competition and transparency for financial markets, stakeholders (shareholders, issuers and users), regulatory authorities, and democratically elected representatives;

4. Welcomes the willingness that the Commission has demonstrated in working with Parliament towards achieving the best possible outcome for all parties concerned; recalls the need for the Commission to involve and inform Parliament from the earliest stages of the committee work;

5. Notes that the procedure regarding the adoption of implementing measures is almost unprecedented and detracts from the usual development of EC legislation; points, therefore, to the need to achieve a mutually satisfactory outcome for all institutions concerned in order to develop the inter-institutional relationship positively;

6. Notes that, in a letter of 23 March 2006 to the Chairwoman of the competent committee, Commissioner for the Internal Market and Services, Charlie McCreevy, specified that the Commission's background notes to the implementing measures are "a simple working document produced by the Commission's services for discussion purposes only. They do not in any way constitute formal amendments to the draft measures"; considers, therefore, that the background notes do not add any conditions to those set out in the draft implementing measures;

7. Points out that, despite the generally cooperative approach amongst EU institutions, there are structural deficiencies in the way in which the delegation of legislative powers to the Commission occurs, which are capable of jeopardising the outcome of important regulation such as the implementing measures;

8. Signals its willingness to continue to improve the functioning of the inter-institutional relationship across the whole range of policy areas, and especially within the Lamfalussy process, with a view to reaching a lasting and mutually satisfactory solution, which puts Parliament on an equal footing with the Council when calling back the delegation of legislative powers;

9. Considers that the adoption of Directive 2004/39/EC by co-decision confers on Parliament an integral role in determining the substance of the implementing measures; considers that Council Decision 1999/ 468/EC grants Parliament not only the authority to reject proposed implementing measures if they are ultra vires but also to modify them in line with the underlying co-decision powers and the spirit of the inter-institutional relationship, which needs to be wholly and solemnly respected;

10. Notes the importance of consolidating the role of the Committee of European Securities Regulators (CESR) in coordinating the activities of national regulators and with a view to promoting regulatory convergence, and as the indispensable key advisor at European level for issues falling within its competence;

11. Remarks that coordinated activity between the competent national authorities should therefore be generally subject to discussion within the CESR; notes that this particularly concerns the following matters:

- the design and establishment of arrangements for the exchange of transaction information between the competent authorities as required by Directive 2004/39/EC in accordance with Article 13(1) of the Draft Implementing Regulation,

- the determination and the discussion between competent authorities of the most relevant market in terms of liquidity or its alternative in accordance with Articles 8 and 9 of the Draft Implementing Regulation, and the resolution of potential conflicts on such issues between the competent authorities;

12. Emphasises that, at the current stage, the CESR lacks the operational means to fulfil its role effectively;

13. Calls on Member States to provide the CESR with the means necessary to put into effect Directive 2004/39/EC and its implementing measures;

14. Calls on Member States to strengthen the democratic accountability of the CESR, in particular towards the Parliament;

15. Takes the view that, as they currently stand, the implementing measures comprise the best achievable outcome for all parties concerned;

16. Approves of the implementing measures;

17. Instructs its President to forward this resolution to the Council, the Commission and the CESR.

[1] Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (OJ L 145, 30.4.2004, p. 1). Directive as last amended by Directive 2006/31/EC (OJ L 114, 27.4.2006, p. 60).

[2] OJ L 184, 17.7.1999, p. 23.

[3] SPEECH/02/44.

[4] OJ C 284 E, 21.11.2002, p. 115.

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