Brussels, 15 June 2006
The European Commission has appointed the 20 members of the European Securities Markets Expert Group (ESME) – a new group which will look carefully at how EU securities Directives work in practice, determine whether or not they are delivering the intended results and propose changes where necessary. Its creation is a follow-up action to the White Paper on Financial Services 2005-2010 (see IP/05/1529) and a crucial part of the Better Regulation agenda in financial services. It will meet up to four times a year and it is likely that one or more sub-groups within the group will be set up to examine specific issues.
Internal Market and Services Commissioner Charlie McCreevy said: "The response to our call for applications for this group has been tremendous. We have received over 120 applications from across the EU – a strong signal of interest in the importance of EU securities legislation and other issues, such as credit rating agencies and the role of financial analysts within a securities markets context. . As a result of the very high level of interest, we have been able to appoint top-class market experts with the right depth and breadth of practical experience, and with an appropriate geographical spread. This is the better regulation agenda in practice. 'Coalface' operators. Early warning. What works? What does not? How to reform? What are the priorities? This group will play an important part in our drive to create a world beating regulatory framework for Europe in the field of financial services. I am very much looking forward to receiving its input."
The European Securities Markets Expert Group will assist the Commission in its analysis of the legal coherence of the EU securities framework. It will aim to identify points of legal uncertainty which impair the functioning of securities markets from the perspective of the regulated community and users of these markets, and will make recommendations to the Commission accordingly. Secondly, it will provide the Commission with input for the reports on the application of various provisions of the Markets in Financial Instruments Directive ("MiFID"), the Prospectus Directive, the Market Abuse Directive and the Transparency Directive. In addition, it will analyse the economic impact of those Directives. Finally, it will provide technical advice – in response to specific requests from the Commission – on issues of contemporary relevance in EU securities markets, such as credit rating agencies and financial analysts.
In compliance with the Commission Decision setting up ESME on the composition of this group, experts have been selected from more than 120 applications. The selection has been carried out according to strict procedures aimed at ensuring the widest possible range of professional backgrounds (such as lawyers, economists and accountants) and geographical balance so that the different EU markets are covered. The Commission may also invite representatives from consumer and investor associations or from academia as observers to some discussions of the group or sub-groups should this prove to be useful.
The list of designated experts, as well as the Commission's decision establishing the group and the terms of reference for the group's constitution and operation, can be found at: