WRITTEN QUESTION E-0763/04 by José García-Margallo y Marfil (PPE-DE) to the Commission. Role of the public authorities in the follow-up period to the financial services action plan.
Date: 2004-03-11
Institutions: European Parliament, Provisional data
Subjects: action programme, application of EU law, approximation of laws, financial institution, financial legislation, free movement of capital, public authorities, single market

8.4.2004

EN

Official Journal of the European Union

C 88 E/209

Answer given by Mr Bolkestein on behalf of the Commission

(26 April 2004)

financial
The wide-ranging consultation exercise that
integration will take stock of progress made as the legislative phase of the Financial Services Action Plan
draws to a close. It is intended to assess the contribution made to the policy objectives defined at the
outset of the process (cid:1) namely, the effective operation of European financial markets, investor protection
and financial stability. The Commission believes that these fundamental policy objectives are likely to
remain the key concepts for evaluating EU policy in this sphere over the long-term.

the Commission has launched in respect of

The work of the Commission in respect of its policy on financial integration forms part of the over-
arching Lisbon strategy for global competitiveness. It is informed by the ongoing discussions on structural
reform in the context of the Broad Economic Policy Guidelines (cid:1) including the views expressed by the
Parliament on the latter. It takes full account of additional long-term policy reflections such as the report
of the independent high level group on ‘an agenda for a growing Europe’ (Sapir report). Therefore, the
Commission believes that its efforts in this field form an integral part of a broader and well-orchestrated
economic strategy.

The consultation process on financial integration will provide ‘bottom-up’ feedback on an important area
of structural reform policy. This will allow the EU institutions to fine-tune further work in this area and
maximise the contribution to overarching economic policy objectives. Any policy orientations to be drawn
from this stock-taking process will also be the subject of open debate and consultation.

(2004/C 88 E/0217)

WRITTEN QUESTION E-0763/04

by José García-Margallo y Marfil (PPE-DE) to the Commission

(11 March 2004)

Subject: Role of the public authorities in the follow-up period to the financial services action plan

In the Commission’s planned follow-up to its financial services action plan, the public authorities and
national governments in particular will play a key role in implementing the provisions of the various
directives, in particular the level 2 directives.

Are the structures currently in place, and in particular the national supervisory and regulatory committees,
adequate to achieve the objective set by the Lamfalussy process of flexible and uniform implementation of
the technical provisions of the directives?

Do these structures not need be strengthened and, if so, how?

Answer given by Mr Bolkestein on behalf of the Commission

(28 April 2004)

With the recent agreement by EU institutions to extend the new financial services committee structure to
banking, insurance and occupational pensions and UCITS, the structures in place will ensure flexible and
uniform implementation of the technical provisions of Directives.

The Lamfalussy Report defined the role of the Committee of European Securities Regulators (CESR) under
Level 3: one of CESR’s main tasks is to assist in the convergent interpretation and implementation by
national authorities of both Level 1 and Level 2 legislation.

C 88 E/210

Official Journal of the European Union

EN

8.4.2004

In this context, CESR’s tasks are:

(cid:1) to produce consistent guidelines for the administrative regulations to be adopted at national level;

(cid:1) to compare and review regulatory practices to ensure effective enforcement throughout the European

Union and define best practice;

(cid:1) to periodically conduct peer reviews of administrative regulation and regulatory practices in Member

States.

Along these lines, the CESR (cid:1) in coordination with parallel Commission action (cid:1) is about to organise
ad-hoc meetings to discuss potential problems with regard to the Market Abuse Directive (1).

CESR, when preparing guidelines or its Level 2 advice to the Commission for the elaboration of Level 2
legislation, tries to reach solutions acceptable to all Members. The Commission considers that this process
can contribute to ensure convergence among national authorities, transposing and applying EU legislation.

In banking and insurance, the new Committee of European Banking Supervisors (CEBS) and Committee of
European Insurance and Occupational Pensions Supervisors (CEIOPS) have recently begun their work. They
will play a critical role in the uniform application of new legislation such as new Capital Adequacy
(CAD III) and Solvency II Directives.

The CEBS has adopted an ambitious work programme to ensure convergence of supervisory practices in
key aspects of the future capital adequacy framework, e. g. on the validation of internal measurement
approaches for credit risk and operational risk, and on the supervisory review process leading to the fine-
tuning of individual capital requirements.

The Commission will work with all supervisory committees to ensure the implementation of best practices.

the EC Treaty’

In any event, it has to be borne in mind that the Commission, as part of its institutional role as a ‘guardian
of
is responsible for controlling the transposition and monitoring of good quality
implementation by the Member States. The Commission can provide interpretative tools and contacts to
facilitate implementation, ensure good quality transposition and avoid infringement procedures before the
European Court of Justice (cid:1) this is also part of Level 4 in the context of the Lamfalussy process.

initiatives have been launched in the context of

A number of
the European Securities Committee
(for instance the establishment of contact points for the implementation of each ‘Lamfalussy Directive’) as
well as a series of meetings scheduled to provide interpretative tools to facilitate the implementation of the
Market Abuse and Prospectus Directives (2). CESR actions can complement the Commission’s determination
to improve implementation and enforcement.

(1) Directive 2003/6/EC of the Parliament and of the Council of 28 January 2003 on insider dealing and market

manipulation (market abuse), OJ L 96, 12.4.2003.

(2) Directive 2003/71/EC of the Parliament and of the Council of 4 November 2003 on the prospectus to be published
when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC, OJ L 345,
31.12.2003.

(2004/C 88 E/0218)

WRITTEN QUESTION E-0764/04

by José García-Margallo y Marfil (PPE-DE) to the Commission

(11 March 2004)

Subject: Use of pre-accession funds

In relation to the effective use of pre-accession funds, can the Commission say how many audits have been
carried out in the new Member States?