Quarterly Bulletin Q3 2013

80
Developments in EU Financial Services
Legislation during the Irish Presidency of the
Quarterly Bulletin 03 / July 13
Council of Ministers January - June 2013
The Informal ECOFIN, Dublin 12/13 April.
Ministers and Governors discussed a number of important issues at the informal ECOFIN
meeting in Dublin Castle on 12/13 April. The items on the agenda included the economic
outlook and financial stability of the EU, the future shape of Banking Union in the EU, tax
transparency and international tax fraud/evasion, financial services’ dossier plans for the
remainder of the Presidency, financing options for long term economic growth and preparations
for IMF/World Bank Spring and G20 Finance Ministers meetings. The discussion on Banking
Union included contributions from two invited speakers, M. Jacques de Larosière and Prof.
Dirk Schoenmaker. A commitment, in a draft Declaration, to the completion of all the agreed
elements of Banking Union was reaffirmed by Ministers and Governors. Financing options for
long-term economic growth were presented by Commissioner Michel Barnier (on the basis of a
Commission Green Paper) and further work to promote this type of growth was agreed. Broad
agreement was reached on the steps that need to be taken to tackle international tax fraud and
draft Terms of Reference for the IMF/World Bank Spring and G20 Finance Ministers’ meetings
were agreed.
Although no milestones were reached in
relation to other market files substantial work
was done in Council Working Groups on
CSDR (Central Securities Depositories
Regulation) and the 4th Anti Money
Laundering Directive.
The CSDR proposal aims to bring more safety
and efficiency to securities settlement and is
linked to the introduction of the TARGET2-
Securities regime. Despite progress it became
clear that it would not be possible to attain a
Council General Approach and a handover
report has been prepared.
A handover report was also prepared on the
4th Anti Money Laundering Directive
following a number of Council Working Group
meetings organised by the Irish Presidency.
This Directive takes account of the revised
international FATF (Financial Action Task Force)
recommendations aimed at preventing the use
of the financial system for the purpose of
money laundering and terrorist financing.
Credit Directive). This was proposed by the
Commission in March 2011 and aims at
creating an efficient and competitive Single
Market for mortgage credit by facilitating cross
border activity. It also seeks to enhance
consumer protection and to ensure more
responsible mortgage lending. Agreement was
reached in April after four high level Trilogues
under the Presidency.
During the second half of the Presidency there
was a focus on achieving a Council General
Approach on the PRIPS (Packaged Retail
Investment Products) Regulation. This
Regulation addresses consumer protection
issues as regards PRIPS where assets are
bundled together creating different exposures,
product features or cost structures as
compared with a direct holding. It introduces
new rules to ensure that consumers are
informed about such products in a
standardised ‘Key Information Document’. A
Council General Approach was reached in
June.
Consumer Protection
The Presidency gave priority to finalising
Trilogue negotiations on a Directive on Credit
Agreements Relating to Residential Property
(more commonly known as the Mortgage