CELEX: 51986PC0326
Language: en
Date: 1986-06-11
Title: PROPOSAL FOR A COUNCIL DIRECTIVE AMENDING FOR THE THIRD TIME THE FIRST COUNCIL DIRECTIVE FOR THE IMPLEMENTATION OF ARTICLE 67 OF THE EEC TREATY ( LIBERALIZATION OF CAPITAL MOVEMENTS )

10.9.86                                  Official Journal of the European Communities                              No C 229/3
                                                                II
                                                        (Preparatory Acts)
                                                  COMMISSION
              Proposal for a Council Directive amending for the third time the First Council Directive for the
                   implementation of Article 67 of the EEC Treaty (liberalization of capital movements)
                                                       COM(86) 326 final
                                 (Submitted by the Commission to the Council on 12 June 1986)
                                                         (86/C 229/03)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                            Whereas the Kingdom of Spain and the Portuguese
                                                                    Republic may, under the terms of Articles 61 to 66 and
                                                                    222 to 232 respectively of the 1985 Act of Accession,
Having regard to the Treaty establishing the European               postpone the liberalization of certain capital movements
Economic Community, and in particular Article 69,                   in derogation from the obligations of the Directive of 11
                                                                    May 1960; whereas these two Member States should be
                                                                    able to postpone the application of the new liberalization
Having regard to the proposal from the Commission,
                                                                    obligations resulting from this Directive, for periods
which consulted the Monetary Committee for this
                                                                    similar to those laid down in the Act of Accession in
purpose,
                                                                    respect of operations of the same nature or which
                                                                    present an equivalent threat to the balance of payments,
Having regard to the opinion of the European Par-
liament,
                                                                    HAS ADOPTED THIS DIRECTIVE:
Whereas the First Council Directive of 11 May 1960 for
the implementation of Article 67 of the Treaty (1), last                                       Article 1
amended by Directive 85/583/EEC (2), laid down the                  The Directive of 11 May 1960 is hereby amended as
obligations of the Member States in respect of the liber-           follows:
alization of capital movements; whereas the degree of
liberalization differs according to the categories of
capital movements in question;                                       1. Article 2 is hereby repealed;
Whereas if the objectives of the Treaty establishing the            2. In Article 3 (1), the words 'List C of Annex P shall be
European Economic Community and, in particular,                         replaced by 'List B of Annex P;
completion of the internal market and the Community's
greater financial integration are to be attained, gradual           3. Article 5 (2) shall be replaced by the following:
progress must be made towards the liberalization of
capital movements; whereas such progress must parallel
                                                                        'Member States shall undertake not to complicate the
that made towards the increased convergence of the
                                                                        authorization procedures required on the date of
economic policies of the Member States, greater
                                                                        entry into force of this Directive. They shall simplify
monetary stability and the development of the EMS;
                                                                        as far as possible the authorization and control
                                                                        formalities applicable to the conclusion or per-
Whereas, as a result of the operations contained in List B              formance of transactions and transfers and shall
of Annex I to the Directive of 11 May 1960 being                        where necessary consult one another with a view to
reclassified so that the liberalization rules applying to               such simplification.'
operations on List A of the same Annex apply to them
also, the procedures for granting the requisite authori-             4. In the last subparagraph of Article 7, the words
zations should not be made more complicated for such                    'List D of Annex P shall be replaced by 'List C of
operations;                                                             Annex P;
                                                                     5. In Article 10, the words 'Lists A, B, C and D
(') OJ No 43, 12. 7. 1960, p. 921/60.                                   contained in Annex P shall be replaced by 'Lists A, B
(2) OJ No L 372, 31. 12. 1985, p. 39.                                   and C contained in Annex P.
 ---pagebreak--- No C 229/4                                  Official Journal of the European Communities                                        10.9. 86
6. Annex I shall be replaced by the Annex to this                                  first phrase in the first indent shall be replaced
    Directive.                                                                     by the following:
                                                                                   '— the sole object of which is the collective
7. Annex II is hereby amended as follows:
                                                                                         investment        in transferable     securities
   — The Nomenclature of Capital                 Movements     is                        (shares and other securities of a parti-
        hereby amended as follows:                                                       cipating nature, bonds) of the capital they
                                                                                         raise . . . '
        (a) The following heading shall be added to items
             III A 1, III A 2, III B 1 and III B 2: '(c) units                 (b) The definition of the term 'Shares' shall be
             of undertakings for collective investment in                          replaced by the following:
             transferable securities'.
                                                                                   'Shares and other securities of a participating
        (b) The following two headings shall be added to                           nature:
             items IV A and IV C:
                                                                                   securities representing a right of property
             '5. Acquisition of units of undertakings for                          arising from the contributions made to a
                 collective    investment     in     transferable                  company by its members, these claims giving
                 securities.                                                       entitlement to a share in the profits made by
              6. Repatriation of the proceeds of liquidation                       the company and to a share in the net assets in
                 of units of undertakings for collective                           the event of liquidation. Include rights to
                 investment in transferable securities.'                           subscribe for new issues of securities';
        (c) The following two headings shall be added to                       (c) The following shall be added:
             items IV B and IV D :
                                                                                   'Bonds:
             '5. Acquisition of units of undertakings for
                 collective    investment     in     transferable                  medium and long term securities, negotiable
                 securities.                                                       or transmissible, which bear fixed or index-
              6. Use of the proceeds of liquidation of units                       linked rates of interest generally payable by
                 of undertakings for collective investment in                      coupons, and which are redeemable, all at
                 transfer-able securities.'                                        once or by instalments, in an amount which is
                                                                                   determined at the time of issue and may be a
        (d) The title of items IV B and IV D shall be                              fixed sum or be subject to indexation'.
             amended as follows:
             TV B Acquisition by residents of foreign                                                  Article 2
             securities dealt in on a stock exchange, or of
             domestic securities dealt in on a stock                   Member States shall take the measures necessary to
             exchange and issued on a foreign market, and              comply with this Directive not later than . . . . (2). They
             use of the proceeds of liquidation thereof.               shall forthwith inform the Commission thereof.
             TV D Acquisition by residents of foreign
             securities not dealt in on a stock exchange, or           The Kingdom of Spain and the Portuguese Republic
             of domestic securities not dealt in on a stock            may maintain, until 31 December 1988 and 31 December
             exchange and issued on a foreign market, and               1990 respectively, the rules laid down in Article 3 of the
             use of the proceeds of liquidation thereof.               Directive of 11 May 1960 in respect of the operations
                                                                       referred to in items IV C and D, VII A and B (iii) of the
    — The Explanatory Notes in Annex II to the                         Nomenclature of Capital Movements and the operations
        Directive of 11 May 1960 are hereby amended as                 referred to in item III of the said Nomenclature which
        follows :                                                      appear in List A annexed to this Directive.
        (a) In the definition of undertakings for collective
              investment in transferable securities (*), the                                           Article 3
                                                                       This Directive is addressed to the Member States.
(') Definition introduced into the Explanatory Notes of Annex
    II to the Directive of 11 May 1960 by Directive
    85/583/EEC on the liberalization of transactions in the
    units of UCITS.                                                     (2) Three months after the adoption of this Directive.
 ---pagebreak--- 10.9. 86                                    Official Journal of the European Communities                                                No C 229/5
                                                                    ANNEX
          'Annex I
                                                                     LIST A
                                        Capital movements referred to in Article 1 of the Directive
                                                                                                                      Items of
                                                                                                                   nomenclature
         Direct investments                                                                                     I
                 excluding purely financial investments made with a view only to giving the
                 persons providing the capital indirect access to the money or capital market of
                 another country, through the creation of an undertaking or participation in an
                 existing undertaking in that country
         Liquidation of direct investments                                                                      II
         Admission of securities of an undertaking to the capital markets                                       III A 1 and 2
                                                                                                                III B 1 and 2
                 — Shares and other securities of a participating nature dealt in on a stock
                     exchange of a Member State or which are the subject of an application for
                     admission to a stock exchange of a Member State
                 — Bonds dealt in on a stock exchange of a Member State or which are the
                     subject of an application for admission to a stock exchange of a Member
                     State
                 — Units of undertakings for collective investment in transferable securities
                     covered by Directive 85/611/EEC ('), without prejudice to the provisions
                     of the said Directive relating to the marketing of units of UCITS (Section
                     VIII)
                 Operations in securities                                                                       IV
                 Investments in real estate                                                                     V
                 Granting and repayment of credits related to commercial transactions or to                     VII 1 A and B
                 provision of services in which a resident is participating
         Personal capital movements
                 Gifts and endowments                                                                           XB
                 Dowries                                                                                        XC
                 Inheritances                                                                                   XD
                 Settlement of debts in their country of origin by immigrants                                   XE
                 Transfers of capital belonging to residents who emigrate                                       XF
                 Transfers of capital belonging to emigrants returning to their country of origin               XG
                 Transfers of workers' savings during their period of stay                                      XH
                 Transfers by instalment of blocked funds belonging to non-residents by the                     XI
                 holders of such funds in case of special hardship
                 Annual transfers of blocked funds to another Member State by a non-resident                    XL
                 account holder, up to an amount or percentage of the total assets, fixed uni-
                 formly by the Member State concerned for all applicants
                 Transfers of minor amounts abroad                                                              XM
         ( l ) Directive on the coordination of laws, regulations and administrative provisions relating to undertakings for collective
               investment in transferable securities (OJ No L 375, 31. 12. 1985).
 ---pagebreak--- N o C 229/6                               Official J o u r n a l of the E u r o p e a n C o m m u n i t i e s                       10. 9. 86
                                                                                                                   Items of
                                                                                                                 nomenclature
            Transfers in performance of insurance contracts                                                   XI
            Sureties, other guarantees and rights of pledge and transfers connected with them
                 related to credits in respect of commercial transactions or provision of services            XII A and B in
                 in which a resident is participating                                                         conjunction      with
                                                                                                              VII 1 A and B
                 related to long-term loans with a view to establishing or maintaining lasting                XII A and B in
                 economic links                                                                               conjunction with I
                                                                                                              A 3 and B 3
            Other capital movements
                 Death duties                                                                                 XIV A
                 Damages (where these can be considered as capital)                                           XIV B
                 Refunds in the case of cancellation of contracts and refunds of uncalled-for                 XIV C
                 payments (where these can be considered as capital)
                 Authors' royalties                                                                           XIV D
                 Patents, designs, trade marks and inventions (assignment and transfers arising
                 out of such assignments)
                 Transfers of the moneys required for the provision of services                               XIV E
            The use of the proceeds of liquidation of assets abroad belonging to residents must be permitted at least
            within the limits of the obligations as regards liberalization accepted by Member States
                                                                     LISTB
                                      Capital movements referred to In Article 3 of the Directive
                                                                                                                    Items of
                                                                                                                 nomenclature
            Admission of securities of an undertaking to the capital market                                   III A 1 and 2
                                                                                                              III B 1 and 2
                 — Shares and other securities of a participating nature, not dealt in on a
                     stock exchange of a Member State or which are not the subject of an
                     application for admission to a stock exchange of a Member State
                 — Bonds not dealt in on a stock exchange of a Member State or which are
                     not the subject of an application for admission to a stock exchange of a
                     Member State
                 — Units of undertakings for collective investment in transferable securities
                     not covered by Directive 85/611/EEC
            Granting and repayment of medium- and long-term credits related to commercial                     VII 2
            transactions or to the provision of services in which no resident is participating                A (ii) and (iii)
                                                                                                              B (ii) and (iii)
            Granting and repayment of medium- and long-term loans and credits not related                     VIII
            to commercial transactions or to the provision of services                                        A (ii) and (iii)
                                                                                                              B (ii) and (iii)
 ---pagebreak--- 10. 9. 86                               Official J o u r n a l of the E u r o p e a n C o m m u n i t i e s                        N o C 229/7
                                                                                                                  Items of
                                                                                                                nomenclature
          Sureties, other guarantees and rights of pledge and transfers connected with them
          and relating to:
               medium and long-term credits in respect of commercial transactions of provi-                 VII A and B in
               sion of services in which no resident is participating                                       conjunction      with
                                                                                                            VII 2 A (ii) and
                                                                                                            (iii) B (ii) and (iii)
               medium and long-term loans not related to commercial transactions or to pro-                 XII A and B in
               vision of services                                                                           conjunction      with
                                                                                                            VIII A (ii) and (iii)
                                                                                                            B (ii) and (iii)
          The use of the proceeds of liquidation of assets abroad belonging to residents must be permitted at least
          within the limits of the obligations as regards liberalization accepted by Member States
                                                                   LIST C
                                    Capital movements referred to in Article 4 of the Directive
                                                                                                                  Items of
                                                                                                                nomenclature
          Short-term investments in Treasury bills and other securities normally dealt in on                VI
          the money market
          Opening and placing of funds on current or deposit accounts, repatriation or use                  IX
          of balances on current or deposit accounts with credit institutions
          Granting and repayment of short-term credits related to commercial transactions or                VII 2 A (i) B (i)
          to provision of services in which no resident is participating
          Granting and repayment of short-term loans and credits not related to commercial                  VIII A (i) B (i)
          transactions or to provision of services
          Personal capital movements                                                                        XA
               loans
          Sureties, other guarantees and rights of pledge and transfers connected with them
               related to short-term credits in respect of commercial transactions or to provi-             XII A and B in
               sion of services in which no resident is participating                                       conjunction      with
                                                                                                            VII 2 A (i) and B
                                                                                                            (i)
               related to short-term loans and credits not connected with commercial trans-                 XII A and B in
               actions or to provision of services                                                          conjunction      with
                                                                                                            VIII A (i) and B
                                                                                                            (i)
               related to private loans                                                                     XII A and B in
                                                                                                            conjunction      with
                                                                                                            XA
          Physical import and export of financial assets                                                    XIII
          Other capital movements: Miscellaneous                                                            XIV F