Resolution of the European Council of 23 March 2001 on more effective securities market regulation in the European Union
Date: 2001-03-23
Institutions: European Council
Subjects: European Union, economic policy, financial market, securities, single market

11.5.2001

EN

Official Journal of the European Communities

C 138/1

I

(Information)

COUNCIL

RESOLUTION OF THE EUROPEAN COUNCIL

of 23 March 2001

on more effective securities market regulation in the European Union

(2001/C 138/01)

THE EUROPEAN COUNCIL, meeting in Stockholm on 23 March
2001,

quality of the legislative measures proposed. This process
should take full account of the conceptual framework of
overarching principles set out in the report.

CONSIDERS THAT:

Financial markets play a crucial role in the overall economy of
the European Union. Rapid implementation of the prioritised
therefore of utmost
(cid:145)Financial
services
efficient
and
importance. The
European securities market
this
strategy.

action plan(cid:146)
creation of

is an essential element of

a dynamic

is

Every effort should be made by all parties concerned to
implement key steps for achieving an integrated securities
market by the end of 2003, including notably the priorities
set out in the report by the Committee of Wise Men on the
regulation of European securities markets, and recognising also
the need for further convergence of supervisory practices and
regulatory standards.

To achieve this the legislative process must be speeded up. The
regulation of securities markets needs to be sufficiently flexible
to be able to respond to market developments and to ensure
that the European Union is competitive and can adapt to new
market practices and regulatory standards, while respecting the
requirements of transparency and legal certainty.

This can and must be achieved whilst
the
Treaty provisions,
concerned and the current institutional balance,

the prerogatives

fully respecting the
institutions
of

HAS THEREFORE RESOLVED AS FOLLOWS:

the

report of

(1) The European Council welcomes

the
Committee of Wise Men on the regulation of European
approach
securities markets. The proposed four-level
(framework principles,
coop-
eration and enforcement) should be implemented to make
the regulatory process for European Union securities legis-
lation more effective and transparent, thus improving the

implementing measures,

consultation with the

(2) The Commission is invited to make use of early, broad and
and all
systematic
interested parties
in particular
strengthening its dialogue with consumers and market
practitioners.

in the securities area,

institutions

The Commission is asked, without prejudice to its right of
initiative, to give the Council and the European Parliament
for the
an opportunity to comment at an early stage,
purpose of
the process, on
the distinction between the essential elements and the
supplementary and technical provisions.

improving the efficiency of

(3) The split between framework principles

(level 1) and
implementing measures (level 2) should be determined on
a case-by-case basis in a clear and transparent way. The
split will be decided by the European Parliament and the
Council on the basis of the Commission’s proposals. The
Commission is invited, when it presents its proposals, to
give indications as to what kind of implementing measures
is foreseen. All parties would then know in advance the
precise scope and purpose of the provisions pertaining to
each of
institutions involved need to
respect the basic conditions of the split-level approach.

those levels. All

Level 2 implementing measures should be used more
frequently to ensure that technical provisions can be kept
up to date with market and supervisory developments.
Deadlines should be set for all stages of level 2 work.

In formulating its proposals, the Commission is invited to
consider more frequent use of regulations where this would
both be legally possible and would help to speed up the
legislative process. The European Council takes a positive
view of the possibility within the co-decision procedure of
allowing for speedy adoption of acts (fast track procedure).

C 138/2

EN

Official Journal of the European Communities

11.5.2001

Regulators Committee, as proposed in the report of the
should be chaired by a
Committee of Wise Men.
It
representative of a national
It
supervisory authority.
its own operational arrangements and
should set out
links with the Commission
maintain close operational
and Securities Committee.
It will act as an advisory
group to assist the Commission in particular in its prep-
aration of draft
implementing measures (level 2). Each
Member State will designate a senior representative from
field to
the
participate in the meetings of the Regulators Committee.

authorities

competent

securities

in the

It should consult extensively, in an open and transparent
manner, as set out in the final report of the Committee of
Wise Men and should have the confidence of market
participants.

National regulators and the Regulators Committee should
also play an important role in the transposition process
(level 3) by securing more effective cooperation between
supervisory authorities, carrying out peer
reviews and
promoting best practice, so as to ensure more consistent
and timely implementation of Community legislation in the
Member States.

The European Council welcomes the intention of
States
Commission and the Member
enforcement of Community law (level 4).

the
to strengthen

(7) An interinstitutional monitoring system should be set up to
assess the progress made on implementing these proposals
to secure a more effective securities market regulatory
identifying the bottlenecks. Regular reports will
system,
be made to the institutions as part of
this monitoring
process.

(8) The new regulatory structure should be operational from
the beginning of 2002 at the latest and there will be a full
and open review in 2004.

immediately

(4) The European Council welcomes the intention of

the
Commission
Securities
Committee of high level officials from Member States,
chaired by the Commission. The Securities Committee,
acting in its advisory capacity, should be consulted on
policy issues, in particular, but not only, for the kind of
measures the Commission might propose at level 1.

establish

to

a

(5) Subject

legislative

to specific

acts proposed by the
Commission and adopted by the European Parliament
and the Council,
the Securities Committee should also
function as a regulatory committee in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
implementing
down the procedures for the exercise of
powers conferred on the Commission (1)
the
to assist
Commission when it
takes decisions on implementing
measures under Article 202 of the EC Treaty.

The European Parliament will be informed on a regular
basis by the Commission of
the Securities Committee’s
proceedings, when this committee is acting under the regu-
latory procedure, and receive all relevant documents. If the
European Parliament
the draft measures
submitted by the Commission exceed the implementing
in the framework legislation,
powers provided for
the
Commission commits
itself expeditiously to reexamine
those draft measures, taking the utmost account of the
Parliament’s position and stating its reasons for the action
it intends to take.

resolves

that

The European Council notes that within the framework of
the comitology Decision 1999/468/EC,
the Commission
has committed itself, in order to find a balanced solution
for those cases of implementing measures in the field of
securities markets acknowledged in the light of discussions
to avoid going against
to be particularly sensitive,
predominant views which might
emerge within the
Council, as to the appropriateness of such measures. This
commitment will not constitute a precedent.

(6) The European Council welcomes the intention of

the
independent

Commission

to

formally

establish

an

(1) OJ L 184, 17.7.1999, p. 23.