The Wise Men’s Group on reforming regulation of the EU securities markets released its interim report on Thursday 9 November
The Wise Men's Group on reforming regulation of the EU securities markets released its interim report on Thursday 9 November. The report proposes a fast-track method of introducing and implementing legislation on financial markets.
The Panel of Wise Men was appointed in July to evaluate the capacity of current securities market regulatory mechanisms to cope with profound technological and societal changes. Under the current rules, creating new legislation on financial markets is too slow and too rigid and leads to ineffective and patchwork implementation.
The experts panel, under the chairmanship of Alexandre Lamfalussy, former President of the European Monetary Institute, recommends that Council and Parliament should pass framework legislation (as EU regulations) and that the detailed implementation should be left to a new 'EU securities committee'. This new Committee would consist of Commission officials and representatives of the member states.
The new system should be introduced from 2002, monitored by the European Parliament and the member states and reviewed around 2004.
The Lamfalussy group rejects for now the idea of setting up an EU securities market regulator or Euro-Sec, because such a proposal would imply a change to the Treaties.
EU finance ministers will discuss the Wise Men's report on 27 November. A final report is to be expected by mid-February 2001, in advance of the Stockholm European Council on 23-24 March. The Lamfalussy Group is asking for comments by stakeholders on these initial proposals.