2006/288/EC: Commission Decision of  30 March 2006  setting up a European Securities Markets Expert Group to provide legal and economic advice on the application of the EU securities Directives
Date: 2006-03-30
Institutions: European Commission
Subjects: advisory committee (EU), application of EU law, operation of the Institutions, securities, self-employed person

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Official Journal of the European Union

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II

(Acts whose publication is not obligatory)

COMMISSION

COMMISSION DECISION

of 30 March 2006

setting up a European Securities Markets Expert Group to provide legal and economic advice on the
application of the EU securities Directives

(2006/288/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

practitioners and experts to assist the Commission in
analysing the main problems in this field. This necessarily
involves studying the transposition and application of
to understand
the national
Community law at
better how Community law is applied in practice, and
to ensure that the level of legal coherence that cross-
border investment services and securities markets need
is in fact being delivered.

level,

Whereas:

(1)

(2)

(3)

to the

Fully integrated and efficient financial markets are funda-
functioning of modern economies.
mental
Completing the single market
in financial services is
therefore a crucial part of the Lisbon economic reform
process and essential for the EU's global competitiveness.

(4)

The White Paper on Financial Services Policy 2005-2010
(White Paper) (1) presents the European Commission's
financial services policy priorities up to 2010. One of
the Commission’s financial services
the objectives of
policy is
and continuously
evaluate the existing legislation and to apply rigorously
the better regulation agenda to future initiatives.

to implement,

enforce

The White Paper identifies various practical steps to
understand better how Community law is applied in
practice, and to ensure that the level of legal coherence
that markets need is in fact being delivered in line with
the Commission’s better regulation agenda. Since the first
sectoral consistency check will be in the securities field, it
has been decided to set up a group of securities markets

it

important

to receive

in financial

In addition to the advice of practitioners on issues related
to the legal evaluation of EU securities Directives, the
Commission considers
the
expert group’s analysis on the economic impact of the
EU securities Directives as well as their practical imple-
mentation and application in the Member States. Conse-
quently, the expert group will also assist the Commission
to prepare its reports on the application of various
provisions of Directive 2004/39/EC of
the European
Parliament and of the Council of 21 April 2004 on
markets
instruments amending Council
Directives 85/611/EEC and 93/6/EEC and Directive
2000/12/EC of
the
Council and repealing Council Directive 93/22/EEC (2),
Directive 2003/71/EC of the European Parliament and
of the Council of 4 November 2003 on the prospectus
to be published when securities are offered to the public
amending Directive
or
2001/34/EC (3), Directive 2003/6/EC of
the European
Parliament and of the Council of 28 January 2003 on
insider
and market manipulation (market
abuse) (4) and Directive 2004/109/EC of the European
Parliament and of the Council of 15 December 2004
on the harmonisation of transparency requirements in

the European Parliament and of

admitted

dealing

trading

and

to

(1) White Paper on Financial Services Policy (2005-2010), COM(2005)

629 final, 1 December 2005.

p. 18.

(3) OJ L 345, 31.12.2003, p. 64.
(4) OJ L 96, 12.4.2003, p. 16.

(2) OJ L 145, 30.4.2004, p. 1, as corrected by OJ L 45, 16.2.2005,

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relation to information about issuers whose securities are
admitted to trading on a regulated market and amending
Directive 2001/34/EC (1). The expert group will also
provide technical advice on the Commission's request
on issues of contemporary relevance in the EU securities
markets, such as credit rating agencies and financial
analysts.

The expert group should be made up of persons having
legal expertise or direct commercial experience in respect
of the matters covered by the mandate. Provision shall be
made for the participation of experts or observers from
other expert groups or consumers/investors associations.

gives

This Decision
the Commission's
effect
commitment in the White Paper to create the expert
group, and defines procedures for its composition and
methods of operation.

to

Considering that the duration of expert group’s activities
should be limited, the expert group will commence in
2006 and continue until the end of 2009 unless the
Commission decides to prolong the mandate of
the
expert group,

(5)

(6)

(7)

2003/71/EC and Directive 2004/109/EC and on the
operation of Directive 2003/6/EC. The advice of the group
will also require an analysis of the economic impact of those
Directives;

credit

such as

— provide technical advice on the Commission’s request on
issues of contemporary relevance in the EU securities
rating agencies and financial
markets,
analysts. As regards credit rating agencies, the Commission
intends to gauge the opinions of market participants, and
especially those purchasing complex financial
instruments,
by requesting advice of the group on specific issues related
to the functioning of credit rating agencies. In relation to
financial analysts, the group could be asked for its views as
to whether
are
adequate.

requirements

regulatory

existing

the

to

shall

group

report

regularly

The
the Commission
summarising its analysis and advice. The Commission is not
bound by the advice of the group and the advice is without
prejudice to the advice of other Commission expert groups on
related issues covered by the mandate. The group will ensure
appropriate coordination with those other relevant Commission
expert groups in order to avoid duplication of work.

HAS ADOPTED THIS DECISION:

Article 3

Composition — Appointment

Article 1

1.

The group shall comprise a maximum of 20 members.

A European Securities Markets Expert Group hereinafter referred
to as ‘the group’ is hereby set up by the Commission.

Article 2

Task

The group shall:

— provide advice to the Commission for its analysis of the
legal coherence of the EU framework and, where appro-
priate, its implementation in national law, by carrying out
a sectoral consistency check of the EU securities directives,
law to identify — from the
reading across the relevant
perspective of the regulated community and users of the
securities markets — points of legal uncertainty in the legis-
lative framework which impair the functioning of
those
markets;

— assist

the Commission by providing advice

that will
contribute to the Commission’s reports on the application
of various provisions of Directive 2004/39/EC, Directive

(1) OJ L 390, 31.12.2004, p. 38.

2.
The members of the group shall be appointed by the
Commission on the basis of applications in response to a call
for expressions of interest by high level experts with practical
experience from business and academic communities and civil
society,
representatives,
involved in the investment services and the securities industry.

including consumers or

investors

The Commission shall assess the eligibility of individual
for expression of

3.
experts who have responded to the call
interest against the following criteria:

— proven expertise and recent practical experience, including
at European or international level, in areas relevant to the
investment services and securities industry and/or,
in the
impact of the EU securities directives in those areas;

— the ability of the individual expert to shape the views of the
business and academic communities and civil society in
respect of the matters covered by the mandate;

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— responses to the call for interest should be accompanied by
material demonstrating that the individual expert meets the
conditions mentioned above;

individuals with regard to the processing of personal data by
the Community institutions and bodies and on the free
movement of such data (1).

— individual experts should also be proficient in a language
which is customary in the sphere of finance at a level which
allows them to contribute to discussions and report drafting
in that language.

Article 4

Operation

In selecting experts, the Commission shall also have regard
4.
to the need to encompass expertise covering all the relevant
functions and products within the securities industry.

In addition, the Commission shall ensure a broad geographical
representation in the group with experts who have direct
knowledge of
including
national markets, to the greatest extent possible on the basis
of the responses received.

a broad range of EU markets,

5.

The following provisions shall apply:

— the members are appointed in a personal capacity, excluding
the possibility for participation of alternates/substitutes in
the group's deliberations, and are required to advise the
Commission independently of any professional connections
or other outside influence;

— the members are appointed for a two-year

renewable

mandate;

— the members are expected to participate actively in the
the subgroups

least one of

group's meetings and in at
mentioned in Article 4(2);

— the members who are no longer able to contribute effec-
tively to the group’s deliberations, who resign or who do
not respect the conditions of this Article or Article 287 of
the Treaty establishing the European Community may be
replaced by the Commission for the remaining period of
their mandate;

1.
The Commission shall organise and chair the meetings of
the group. The group will meet four times a year in plenary and
several times within the sub-group(s) structure.

2.
The Commission may set up one or more sub-groups to
examine specific questions and define its terms of reference; any
such sub-group shall be disbanded as soon as its specific
function has been fulfilled.

3.
The Commission shall set out a work programme for each
calendar year. The programme should determine the subjects for
discussion by the group or one of its sub-groups and set out a
time-table for discussion of draft reports in the plenary meeting
of the group. The advice and analysis of the group will enable
the Commission to make the required assessment.

4.
The Commission may ask other experts or observers with
specific competence on a subject on the agenda to participate in
the deliberations of the group or a sub-group if this is useful or
necessary. This provision may be used for inviting experts from
other Commission expert groups or observer(s)
from asso-
ciations representing consumers or investors.

5.
An expert or observer may not divulge information
the
obtained through participation in the deliberations of
group or a sub-group if the Commission classifies that infor-
mation as confidential.

6.
The group and its sub-groups shall normally meet on
Commission premises in accordance with the procedures and
schedule established by the Commission. The Commission shall
provide secretarial services.

— the names of members appointed by the Commission will
be published on the Internet site of DG Internal Market and
Services. The names of members are collected, processed
and published in accordance with the provisions of Regu-
lation (EC) No 45/2001 of the European Parliament and of
the Council of 18 December 2000 on the protection of

The group shall adopt its rules of procedure on the basis

7.
of a draft presented by the Commission.

(1) OJ L 8, 12.1.2001, p. 1.

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The Commission shall publish on the Internet site of DG
8.
Internal Market and Services,
language of the
document concerned, the group’s conclusions and reports as
well as the summaries of its meetings or of its sub-group(s).

in the original

Article 5

Meeting expenses

The Commission shall reimburse travel and subsistence
1.
expenses for members in connection with the group’s activities
in accordance with the provisions in force at the Commission.
The members shall not be paid for their duties.

2. Meeting expenses are reimbursed within the limits of the
appropriations allocated to the department concerned under the
annual procedure for allocating resources.

Article 6

Entry into force

The decision shall take effect on the day of publication in the
Official Journal of the European Union. It is applicable until the
end of 2009 unless the Commission decides, before that date,
to prolong the mandate of the group and of any sub-groups
which might have been established.

Done at Brussels, 30 March 2006.

For the Commission

Charlie McCREEVY
Member of the Commission