Financial services: action plan. Progress report

The Parliament adopted its resolution based on the report by Mr Jose Manuel Garcia-Margallo y Marfil (EPP/ED, Spain) on the Financial Markets Action Plan. The main points are as follows: - whilst the Parliament agrees with the strategic objectives of the Action Plan, it believes that these objectives will not be attained unless the current institutional arrangments are completely reformed. It asks for a list of administrative practices which prevent financial services providers from benefiting from the single financial market. - Parliament asks the Commission to table proposals for legislative harmonisation in order to develop integrated securities dealing systems. The necessary guarantees must be laid down to protect investors from fraud and maladministration resulting from the opening up of the financial markets. A thorough assesment of legal and fiscal barriers that prevent SME's and corporate entities from reaping the full benefits of the single currency is needed. - the resolution contains proposals on measures concerning the wholesale markets, the retail markets, prudential rules and supervision and supplementary measures for an optimal market. - on retail markets, it is pointed out that cross-border payments should be made easier and cheaper in the interests of consumers. Parliament calls for the development of a payments infrastructure which can support secure and low-cost card payments. It characterises the current situation where cross border card payments incur charges which far exceed domestic transfer rates as intolerable. - Parliament calls for a Green Paper on the creation of an EU Securities and Exchange Commission along the lines of the US-SEC, and a Green Paper on whether thee is a need to create a single Advisory Forum or financial stability in Europe in order to enhance cooperation among European supervisors.�