MEPs obtain democratic control over financial securities legislation

The European Parliament endorsed the Commission’s proposals on the single market in financial services on Tuesday 5 February. By adopting the own-initiative report by rapporteur Karl von Wogau (EPP/ED Germany), MEPs secured the right of the Parliament to be informed and consulted on the implementation of legislation on financial securities.

The European Parliament has been concerned about the delegation of power to the ESC. In the adopted resolution, the Parliament and the Commission agreed, amongst other, on the following issues to guarantee the democratic supervisory role of the Parliament when “fast track” procedures are used to produce legislation on financial services.

  • ‘equivalent treatment’ of both the Council and Parliament with regard to implementing measures;
  • a so-called “sunset clause” foreseeing, if necessary, a revision of the Commission’s delegated powers after a period of four years;
  • a three month review period during which MEPs will be able to examine secondary legislative measures;
  • full transparency and wide consultation of the Parliament on draft measures.

 

Speaking at a press conference after the adoption of the report,rapporteur Karl von Wogausaid that Parliament had "rightly insisted on control of legislation in this area in order to protect the interests of the general public and to prevent too much red tape."

European employers' organisationUNICEalso welcomed the Parliament's vote. It "is the right step at the right time" said Philippe de Buck, Secretary General of UNICE. "We are pleased to see that all institutions have finally taken a pragmatic approach and agreed on a working mechanism designed to deliver results."

 

The European Commission decided on 6 June 2001 to set up two committees to bring about 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 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 to do so 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 technical implementation measures. It will also be made up of national representatives.

 

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