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The EU Financial Services Action Plan: Delivering the FSAP in the UK, outlines the steps being taken by the UK authorities to implement the large number of EU measures - over 20 - that are likely to affect the financial sector over the next three to four years.
The second document, After the Financial Services Action Plan: A new strategic approach, considers what can and should be done to further integrate the Single Market in financial services. It also highlights the success of the UK's regulatory environment for financial business; recent successes in Europe in negotiating the Investment Services Directive the Transparency Directive and the decision to locate the Committee of European Banking Supervisors in London.
The Chancellor of the Exchequer, Gordon Brown, said: "To be fully equipped for the global economy all of us must ensure that the new enlarged Europe must become more open, more outward looking, and more flexible, competitive and reforming - in product and capital markets, employment policy, our attitude to taxation, and in monetary and fiscal policy, and trade.
"The financial sector is a key part of the European economy and reform in financial services is essential to economic reform in Europe, to contribute to economic growth and employment.
"Today, we face the challenge of more competitive global markets, in finance especially. Europe must respond to this challenge to become and remain competitive. An efficient, competitive and integrated Single Market in Europe is a key element, but it must always recognise that financial markets are global.
"We will support the European Financial Services Action Plan as it improves recognition of financial services providers in insurance, banking and capital markets. "
Background
- Both documents are available on HM Treasury's website at www.hm-treasury.gov.uk/documents/financial_services/eu_financial_services/fin_euf_actionplan.cfm
- The EU Financial Services Action Plan (FSAP) consists of 42 measures intended by 2005 to fill gaps and remove existing barriers to provide a legal and regulatory environment that supports the integration of financial markets across the EU. It follows the joint document published by the Treasury, Financial Services Authority and Bank of England in July 2003 (The EU Financial Services Action Plan: A Guide) that presented a detailed explanation of the FSAP. The document published today describes the implementation challenge that exists for both the authorities and the financial sector, as well as providing useful guidance notes on each of the measures due to be implemented in the UK and in other EU Member States, and encourages the UK-based financial sector to consider the impact of these measures on their own business and to prepare accordingly. The document also emphasises the existing close co-operation that exists between the UK authorities and the financial sector in implementing the FSAP, and the authorities' commitment to do everything possible to alleviate the compliance burden associated with implementing the FSAP and other EU legislation affecting the financial sector. In particular, the document sets out the UK authorities' priorities for achieving a Single Market that is truly competitive, both internally and in the global market place, namely:
- Better implementation and enforcement of EU financial service measures.
- Identifying and deploying alternatives to EU regulation, for example by using EU competition policy as a regulatory lever. * Promoting the Government's "Better Regulation" agenda, especially by through the greater use of regulatory impact assessments. * Making the Lamfalussy decision-making arrangements work well. * Recognising the global nature of financial services.
- Callum McCarthy, in his first speech as FSA Chairman in October 2003, focussed on the critical importance of effective implementation of EU financial services legislation. He stressed that FSA, working in close co-operation with HM Treasury, would do all it could to help the firms it regulates by giving as much certainty as to the content and the timing of FSA's implementation work. The progress made since clearly demonstrates the commitment of the UK authorities to rise to this challenge.
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