Press Release: Mergers and acquisitions in the financial sector: Commission asks for industry’s views on how to improve supervisory approval process

The European Commission on 16 March 2006 launched a consultation on how to improve the supervisory approval process for mergers and acquisitions (M&A) in the banking, insurance and securities sectors. Current EU rules allowed Member States' supervisory authorities to block proposed M&A if they considered that the 'sound and prudent management' of the target company could be put at risk. As part of its ongoing review of this area, the European Commission was now asking the financial services industry how the clarity and transparency of these rules could be improved, and how best to ensure their consistent application across the EU. All interested stakeholders were invited to respond to the consultation by 19 April 2006.