| Author (Person) | Mallinder, Lorraine |
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| Series Title | European Voice |
| Series Details | Vol.12, No.22, 8.6.06 |
| Publication Date | 08/06/2006 |
| Content Type | News |
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By Lorraine Mallinder Date: 08/06/06 MEPs are set to give their approval next week (15 June) to implementing measures for the EU's new law on investment services, the MiFID directive. The green light will be subject to "balanced compromises" on recent changes to the directive being agreed at a meeting of member states' representatives, the European Securities Committee (ESC) tomorrow (9 June). The law, formally known as the markets in financial instruments directive, aims to create a "single passport" for investment firms, ironing out differences between national regulatory requirements, harmonising investor protection rules and increasing the transparency of securities transactions. The changes are supposed to boost competition in the sector by facilitating cross-border investment activity. The framework law has already been agreed between the Parliament and the Council of Ministers. What is now being discussed are the implementing measures, of a more technical nature. The Commission can introduce these so-called level-two measures, having submitted them to the ESC and the European Parliament for their opinion. The scope of level-two measures is defined in the framework directive. For MiFID, it covers such areas as conduct of business and organisational requirements for firms and markets (eg, compliance, risk management and internal audit functions), transaction reporting and transparency requirements. "If the ESC is able to give us a balanced compromise on all open issues at their meeting, I am confident that we will adopt the implementing measures," said centre-right MEP Piia-Noora Kauppi, who has been responsible for drafting Parliament's opinion on the directive. ESC member Torben Weiss Garne, who represents the Danish Financial Supervisory Authority, said he did not expect any hitches. "I think we are going to live up to the timing and are going to pass this," he said. The level-two measures will be put to a final vote of the ESC on 26 June. The ESC will pay particular attention to the Commission's amendment on deferred reporting of large trades, an important concession to industry, which would allow firms to minimise risks involved in taking large positions. The amendment allows firms three days to reduce their position before disclosing market-sensitive information. Parliament's economic and monetary affairs committee had raised concerns about the likelihood of smaller investment firms suffering at the hands of speculators seeking to take advantage of market asymmetries. Such firms would have to factor in the risk of huge losses, charging investors more to provide the liquidity needed to cushion potential blows. Dissent among member states has meant that the entry into force of MiFID, which was adopted by the EU in 2004, has been delayed to November 2007. Article reports that MEPs were expected to give their approval 15 June 2006 to implementing measures for the EU's new law on investment services, the MiFID Directive. The law, formally known as the Markets in Financial Instruments Directive, aimed to create a 'single passport' for investment firms, ironing out differences between national regulatory requirements, harmonising investor protection rules and increasing the transparency of securities transactions. |
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| Source Link | http://www.european-voice.com/ |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
