MEPs seek financial advice on new laws

Date: 20/12/01

MEPS are hiring a panel of top financial-services brains to help them make better-informed decisions on complicated new laws governing the sector.

Christa Randzio Plath, chairwoman of the assembly's economic and monetary affairs committee, said the group would mirror the role of another panel of experts that primes deputies with tough questions ahead of regular meetings with European Central Bank President Wim Duisenberg.

"The panel will help us to ensure that European legislation in the field of financial services is adapted to the needs of all market participants and faces up to the challenges of this key industry," she said.

There is currently a surfeit of industry position papers on new laws - and MEPs are inundated with demands from lobby groups and stakeholders. But deputies say they want to get expert opinion on issues when it suits them - not when it suits the lobbyists.

MEPs expect the expert advice will help them keep up on the progress of complex rules such as draft directives on market abuse and prospectuses currently under scrutiny, and the overhaul of the investment services and capital adequacy slated for 2002.

MEPs hope the panel will also give them more say on the development of the more detailed rules fleshing out these directives - under the system proposed by the former Belgian central banker Alexandre Lamfalussy.

Sources say the baron himself would probably qualify to be a panellist - although they say he is unlikely to send in an application form.

MEPs are currently battling for more powers to oversee the work of two new EU committees set up to propose and rubber-stamp the detailed rules.

Christian Democrat Karl Von Wogau wants to add a separate market-participants committee to contribute expert insight.

Von Wogau thinks market players would improve these details - set to be drawn up by the committees of European securities market regulators and then rubber-stamped by a Commission-chaired securities committee of treasury officials.

He is also expected to push for a formal "call-back" for MEPs over decisions taken by the securities committee.

MEPs are hiring a panel of top financial-services brains to help them make better-infomed decisions on complicated new laws governing the sector.