3 Integration of financial markets
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4156/04
+ ADD 1
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| Financial Services Committee report on financial integration
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| Legal base | —
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| Department | HM Treasury
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| Basis of consideration | SEM of 7 October 2004
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| Previous Committee Report | HC 42-xxvii (2003-04), para 2 (14 July 2004)
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| To be discussed in Council | 16 November 2004
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| Committee's assessment | Politically important
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| Committee's decision | For debate in European Standing Committee B (decision reported on 14 July)
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Background
3.1 The Financial Services Action Plan (FSAP) set out a programme
of measures to create a single wholesale market for financial
services and products and an open and more secure financial retail
market and to implement state-of-the-art prudential rules and
supervision. It was endorsed by the Cologne European Council in
1999 and is a key part of the Lisbon Strategy for the EU to become
the world's most competitive and dynamic knowledge-based economy.
In June 2003 the ECOFIN Council asked the Financial Services Committee
(FSC)[11] to report on
progress in financial integration, on key areas where further
integration could deliver substantial economic benefits and on
which of those are priority areas. In July 2004 we recommended
this document, the FSC's response to that remit, for debate in
European Standing Committee B.[12]
The amended document
3.2 The addendum to the original document has been prepared as
a cover note by the FSC. It summarises the key points of the paper
and seeks to indicate priorities amongst its recommendations.
The order of priorities it suggests are:
- full and consistent implementation of FSAP legislation within
the time limits set and effective enforcement by the Member States;
- close cooperation between supervisory authorities;
- an approach to further integration based on analysis
of remaining obstacles and of the impact of possible new measures;
- taking fully into account horizontal issues,
notably financial stability, corporate governance, market integrity
and the global characteristics of financial services; and
- specific areas of importance, notably efficient
clearing and settlement, improving the legal framework for retail
payments, reducing obstacles to electronic financial services,
the UCITS (undertakings for collective investment in transferable
securities) draft Directive and the integration of upstream market
functions in general.
Conclusion
3.3 The addendum is an integral part of the document
we have already recommended for debate (which debate is to take
place in European Standing Committee B on 20 October) and should
be read with that document.
11 This is an advisory committee for the ECOFIN Council
andis comprised of senior national finance ministry officials. Back
12
See headnote. Back
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