Commission sets up two powerful securities committees

European Commission sets up two committees dealing with more effective and speedier regulation of Europe’s securities markets

The European Securities Committee (ESC) will advise the Commission on securities issues. It will also function as a regulatory committee and adopt draft technical implementation measures, once it has been given the competences by the Council and the European Parliament under the co-decision procedure. The ESC will be made up of representatives from the Member States.

The Committee of European Securities Regulators (CESR) is an independent advisory body, which will help the Commission prepare the technical implementation measures. It is also made up of Member States’ representatives.

 

The European Parliament is worried about the delegation of power to the ESC. MEPs are trying to define rules for full transparency and democratic parliamentary control. They even called for a "call back" procedure.

On 15th March, the Parliament voted on the Lamfalussy Report, adopting a resolution which calls for the inclusion of measures which would give the Parliament a right to review legislative decisions taken by the European Securities Committee

 

The European Commission decided on Wednesday 6 June to set up two committees dealing with more effective and speedier regulation of Europe's securities markets. The European Securities Committee (ESC) and the Committee of European Securities Regulators (CESR) had been proposed by the Lamfalussy report on the Regulation of European Securities Markets.

 

The ECOFIN of July 2000 had asked a Committee of Wise Men, chaired by Alexandre Lamfalussy, to examine ways of introducing accelerated decision-making procedures for the integration of the EU's securities market by the end of 2003.

In its final report published in February 2001, the Lamfalussy Group proposed a regulatory reform based on a four-level approach and the establishment of two Committees to assist the European Commission .

 

The Council and the European Parliament will have to approve the setup of these two new committees. It is clear that MEPs will try to amend the current proposals, although they support the aim of getting speedier decision-making in this field.

 

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