Consultation revising the Market Abuse Directive (Richtlijn marktmisbruik)

The European Commission will present its recommendations to revise the Market Abuse Directive later this year. In a Call for evidence, it details its provisional plans and raises, inter alia, the following issues.

  • Should the scope of the directive be extended to include non-regulated markets?
  • Should the definition of financial instruments in the Market Abuse Directive be brought into line with the definition of financial instruments in MiFID?
  • Both ESME and various national supervisory bodies have reported problems related to the obligation of issuing institutions to disclose inside information as soon as possible. Would this be improved if the definition of inside information is specifically amended for this obligation?
  • Should the obligation to compile lists of insiders be revised?

Harmonisation of securities law

The European Commission has held a Consultation on the harmonisation of securities law. The deadline for responses to the Commission’s Working Document Legislation on legal certainty of securities holding and dispositions was 11 June 2009. Reforms of financial supervision The European Commission has commenced Consultations on reforms to the framework of financial markets supervision. Two new institutions will be created:

  • the European Systemic Risk Council (ESRC), whose task will be to ensure financial stability and issue timely warnings of possible systemic risk, and
  • the European System of Financial Supervisors (ESFS), a unity of national supervisory bodies which will cooperate with three new supervisory bodies: the European Securities Authority, the European Banking Authority, and the European Insurance and Occupational Pensions Authority.

The Commission has followed the advice of the de Larosière group. Interested parties can respond to the Commission until 15 July 2009.

Review of the Directive on Deposit Guarantee Schemes (Richtlijn inzake de depositogarantestelsels)

The European Commission will present a report by the end of 2009 to the European Parliament on the Directive on Deposit Guarantee Schemes. If necessary, it will also submit proposals to amend the directive.

In preparation for this, the Commission has published a document containing questions on the directive. It would like to know how Europeans assess the level of coverage, whether they think there should be a minimum coverage or a fixed amount, and whether one European body should replace the existing 40 deposit guarantee schemes. The Commission also posed questions on the term within which payments must be made, the manner in which claims should be verified, and the manner in which the schemes should be financed.

Interested parties have until 27 July 2009 to respond to the Consultation document.

Responsible lending and borrowing in the European Community

The European Commission intends to adopt measures aimed at increasing responsible lending and borrowing12. In order to analyse the market, it has published a consultation document Responsible lending and borrowing in the EU in which it asks market parties about their experience when providing or entering into loans. The Commission also asks market parties to indicate whether additional regulation would be useful. The consultation is open until 31 August 2009.