Brussels, 27th July 2001
Financial services: UK to be referred to Court over investor compensation Directive
The European Commission has decided to refer the United Kingdom to the European Court of Justice for failure to implement the Directive on investor compensation schemes within the territory of Gibraltar.
Directive 97/9/EC on investor-compensation schemes provides for Member States to ensure that one or more schemes are in place to compensate investors (up to a ceiling which cannot be less than €20,000) in case of failure of an investment firm (banks or non-banks) where the firm proves unable to refund to investors the money or securities belonging to them (see IP/97/138). The Directive should have been implemented by 26 September 1998. The UK has notified other national implementing measures transposing this Directive, but not concerning the territory of Gibraltar.