By Chris Jones - 6th December 2005
Brussels is planning a largely ‘hands off’ approach to regulating European financial services over the next five years, according to a European Commission white paper.
Internal Market Commissioner Charlie McCreevy said that the focus in the future would be on consolidation rather than new legislation.
However, the retail banking sector could still be subject to further rules “with a view to enabling consumers to shop around all over Europe for the best savings plans, mortgages, insurance and pensions”.
McCreevy said that the action plan, launched in 1999 with the aim of integrating European financial services and improving cross-border trade, had been successfully completed.
“Our aim now should be to create the best financial framework in the world, creating real, tangible benefits for the citizens and businesses of Europe through lower capital costs, better pensions, and cheaper, safer retail financial products.”
Guido Ravoet, Secretary General of the European Banking Federation, welcomed the commission’s stance, but warned that any further legislation had to be justified.
“While we can support the commission’s intention to identify possible existing problems associated with [bank account] user mobility…this is clearly an area where the commission should resist the temptation to legislate unless it has a very strong business case for doing so.”
The paper, which will be presented to EU finance ministers on Tuesday, states that rating agencies and financial analysts will not be subject to any new legislation.
But the commission is yet to decide whether investment funds need further regulation.
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