Financial services: investor-compensation schemes

The committee adopted the draft recommendation for second reading on the common position concerning a directive on investor-compensation schemes. The rapporteur again tabled the amendment adopted at first reading introducing a definition of the term "branch" together with a series of amendments aimed, in particular, at providing the investor-compensation schemes with the power to determine whether or not an investment firm appeared to be unable to meet its obligations. A further amendment stipulated that the exclusion of a firm from membership of a compensation scheme should be immediate (as opposed to the twelve-month period provided for in the common position). Finally, the rapporteur wanted to ensure that investors would be compensated as quickly as possible and proposed that the three-month period referred to in Article 9(2) of the draft directive should run from the date when it was determined that the investment firm was unlikely to meet its obligations. �