The European Commission has published a working document setting out its current strategy for a new EU framework governing capital requirements for banks and investment firms.

The working document is intended to form the basis of a period of structured dialogue with industry representatives. At EU level, this dialogue will be carried out by the commission and at the national level will be coordinated by the relevant supervisory authorities.

The consultation process runs until January 2003. The commission subsequently plans to issue a third and final consultative document by August 2003. It aims to adopt a proposal for a directive in early 2004, which will amend Directive 93/6 on capital adequacy.

The commission's timetable for the adoption of a proposal has been postponed to take account of the revised process for finalizing the Basle Committee's Capital Accord.

For further information on this topic please contact Philip Woolfson at Oppenheimer Wolff & Donnelly by telephone (+32 2 626 0500) or by fax (+32 2 626 0510) or by email ([email protected]).