The European Parliament has adopted an own-initiative Report considering the White Paper on financial services policy (2005-2010) and the implementation of the Financial Services Action Plan (FSAP). Overall, the European Parliament congratulates the European Commission on the contribution of the FSAP towards the creation of a leading capital market and approves the economic priorities set out in the Commission White Paper, namely to consolidate the European financial market, remove barriers to the free movement of capital and improve the supervision of financial services. Member States are urged to ensure the timely and consistent implementation of the FSAP and the Commission is called on to monitor its enforcement, and the Level 3 committees urged to improve the consistency of its application.
The Report goes on to note a high market consolidation in the top segment of financial services provided to large listed companies notably by audit firms, credit rating agencies and investment banks. It urges the Commission and national competition authorities to apply competition rules carefully to those market players to ensure that there is sufficient competition at the top end of the market. The Report also considers the rapid rise and systemic risks of alternative investment vehicles (hedge funds and private equity) inviting the Commission to launch a debate on hedge funds and to review the differences in Member States' regimes for retail access to alternative investments. Other topics discussed include the financial culture and better regulation of financial services within the EU, and of their broader global impact, especially in relation to the US and South-East Asia.
View Report on financial services policy (2005-2010): White paper, (PDF 238KB), 14 August 2007