Banking and investment services: Commission moves on financial services breaches

United Kingdom
The Commission has decided to take action against 8 Member States for failure to implement various financial services Directives.

All 8 (Belgium, France, Germany, Greece, Ireland, Italy, Luxembourg and Spain) are to receive reasoned opinions for failing to implement the "Post-BCCI" Directive. This Directive increases the transparency of group structures to ensure that national regulators can monitor financial groups more effectively. It followed the collapse of the Bank of Credit and Commerce International.

Germany is also being taken to task for failing to implement two other Directives. It should have translated the Deposit Guarantee Directive into national law by 1 July 1995. The Directive requires all credit institutions to belong to a deposit protection scheme in their home State. Germany has consistently opposed the measure on the grounds that it was inferior to the protection available in Germany, and in the summer the European Court of Justice ruled that Germany's challenge to the Directive was unfounded.

The second measure is the Investment Services Directive which provides a single passport for cross-border operations by investment firms, which Spain and Luxembourg have also failed to implement.