European Commission: Financial Services: User Expert Forum Delivers First Opinion On Post-Action Plan Stocktaking Groups

FIN-USE, an expert panel set up by the European Commission to give opinions on financial services from a “user” perspective, has delivered its first opinion on the four stocktaking group reports produced in May 2004 (see IP/04/600, MEMO/04/106), as the legislative phase of the Financial Services Action Plan (FSAP) came to an end. The stocktaking reports assessed the state of financial integration in the EU. In its opinion, which reflects the consensus view of the group members and not necessarily that of the Commission, FIN-USE sets out its views on the reports, and makes ten principal recommendations. The Commission will take these into account, along with the results of the recent public consultation on the stocktaking reports, in the process of completing the implementation of the FSAP and in determining future financial services policy.

Internal Market Commissioner Frits Bolkestein said: “I thank FIN-USE for this first opinion and look forward to more in the future on other important financial services topics. This is proof that the Commission is delivering on its aim of opening up policy-making to all stakeholders. We will take the FIN-USE recommendations very seriously. The ultimate goal in the creation of an Internal Market is, after all, to increase choice and reduce prices for consumers and end-users. To do that, we need to make sure first that financial services providers can operate across borders without the cost of having to comply with 25 different sets of rules, second that consumers and investors know exactly what they are buying and how it compares to other products, and third that they have strong protection against charlatans and profiteers. I believe that those three key aims are perfectly compatible. They underpin all FSAP measures.”

The FIN-USE opinion takes issue, in so far as consumer interests are concerned, with some of the conclusions of the four stocktaking reports. The opinion examines each report in detail and lists ten key recommendations as a general response. In particular those recommendations advocate more effective involvement and representation of the user perspective at all levels of policy making, and view consumer confidence as a pre-condition for a successful integrated market in retail financial services. The report also says that users need more independent advice and transparency over any ties intermediaries such as financial services advisers and insurance brokers have with providers. FIN-USE is sceptical about the use of self regulation at EU level.

Background

In April 2004, the Commission set up FIN-USE, an expert panel of users (consumers and SMEs) of financial services, (see IP/04/450) with a view to opening up policy making and making it more inclusive and accountable. The establishment of FIN-USE coincided with the start of a consultation process on four reports by expert groups which assessed the state of integration in the banking, insurance, securities and asset management sectors. The examination of these reports was a natural starting point for the new expert group.

The full FIN-USE Report entitled “Financial Services, Consumers and Small Businesses - a user perspective on the reports on Banking Asset Management, Securities and Insurance of the Post FSAP Stocktaking Groups” can be found at:

http://www.europa.eu.int/comm/internal_market/finservices-retail/finuse_en.htm