The Financial Services sector deals with the operability of the
banks and other intermediaries and with the functioning of financial
markets. The regulatory activity related to the Financial Services
at the European level is dealt with partly by the Ecofin Council
and partly by the Competitiveness Council.
Ecofin is responsible for the aspects concerning banks and stock
markets, while the Competitiveness Council is responsible for
issues relating to company law, which are, in some cases, connected
to the financial markets. The two Council working groups (the
Financial Services group and the Corporate Law group) negotiate
the proposals submitted for discussion and prepare the dossiers
for COREPER, which then sends them to the Councils for final approval.
Adoption of the Financial Services' action plan, composed by
more than 40 legislative measures that had to be completed by
2005, is currently fundamental for the determination of Community
legislative activity in the sector. Legislation has nearly been
fully approved, even if many measures will only be transposed
in national legislations in the next few years. Moreover, negotiations
concerning other aspects of regulation, recently presented by
the Commission (for instance for audit, anti-money laundering
measures and fighting against terrorism financing) were recently
concluded. As far as corporate law is concerned, the Commission
has just clarified its position in terms of initiatives for the
period 2005-2010 in an “post-action plan”, whose main
guidelines can be found in the “white book on financial
services” of December 2005. Unit trusts management and in
a more general way assets and liabilities can be mentioned.
A particular attention is given to the correct transposition
of adopted measures, as one of the essential elements for a more
integrated European financial market.
It should be pointed out that the Financial Services sector
has recently been provided with new operational procedures concerning
the decision-making process. In addition to the usual procedure,
which provides for co-decision between the Council and the European
Parliament, more efficient solutions have been found in order
to deal with the highly technical and rapidly evolving financial
sector. Community institutions are therefore making all the necessary
efforts to adapt to new committee procedures. Executive powers
are held by the Commission, which is assisted by committees with
regulatory powers and committees with the authority to supervise
the various financial sectors, which are given consultative powers
but which should also favour regulations convergence.
As far as strategies are concerned, the role of the Financial
Services Committee has been increased. Established in 2003 and
composed by High Level Representatives from Member States, its
purpose is to supply the Ecofin Council, by means of the Economic
and Financial Committee, and the Commission with consultancy on
all questions concerning Financial Services.
