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Federation Of European Securities Exchanges Policy Proposal: An Ombudsman For Cross-Border Financial Services’ Providers In Europe

Date 02/06/2004

FESE has recently asked Dr. Oonagh McDonald to prepare a study on the original idea of Ombudsman for financial services. The work of Dr. McDonald has just been finished. The feasibility study will form a basis for FESE further work on this idea. The study will be available on the FESE website (www.fese.org) in the course of next week. All European Institutions as well as major associations and federations active in the field of financial services will be presented with the study.

FESE policy proposal

An ombudsman for cross-border financial services’ providers in Europe

Europe’s financial services industry needs a European ombudsman to oversee cross-border disputes between businesses and national regulators. FESE believes that the ombudsman system would provide a speedy and cost-effective mechanism of dealing with problems caused by the uneven enforcement of EU rules and regulations by national regulators. In the medium-term an ombudsman would help create a level playing field for all financial services firms.

In essence, FESE proposes that the EU ombudsman for financial services firm should operate as follows:

• The ombudsman would initially examine a firm’s grievances, judging them on their cross-border character and importance to the efficient functioning of European capital markets.

• The ombudsman would then (anonymously) transmit his appraisal of the case to CESR. CESR would be required to respond within 3 months.

• Subsequently, the ombudsman would discuss CESR’s response with the aggrieved party and within three months publicly publish a reasoned response to the case.

CESR and its national regulator bodies must be parties to the ombudsman statute and commit themselves to implement any decisions, unless specifically prohibited by law. The ombudsman should also be accountable to EU institutions – he or she should deliver an annual report to the Commission, the Council and the European Parliament and be prepared to attend relevant European Parliament hearings.

Paul Arlman
Secretary General