5. EC FINANCIAL REGULATION : AMENDMENTS
TO SOLVENCY AND CAPITAL ADEQUACY DIRECTIVES
Letter from Helen Liddell MP, Economic
Secretary to the Treasury, to Lord Tordoff, Chairman of the Committee
I wrote to you on 10 November 1997
to explain that the Luxembourg Presidency was seeking to obtain
political agreement to three amending directives
covering capital requirements for credit institutions and investment
firms. Political agreement was reached at ECOFIN on 17 November
but the Council could not move to common position as the European
Parliament had yet to complete its first reading of the amendment
to the Capital Adequacy Directive (CAD2).
The European Parliament completed its first
reading in December and we expect the Commission to adopt its
amended CAD2 proposal incorporating the European Parliament's
amendments in the next few days. This will allow the Council to
formally move to common position on all three directives.
There are no substantive differences between
the European Parliament's amendments, the Commission's amended
proposal and the political agreement text on CAD2. There is a
small drafting change in the last sub-paragraph of point seven
in Annex VIIIthe wording now reads ". . . institutions
shall notify promptly, and in any case no later than within
five working days, the competent authorities . . .".
In addition, the three texts have been tidied up by jurists/linguists
and as such there is some re-ordering of paragraphs.
As Presidency, we would like to move to common
position on all three amending directives at the first available
Council following the adoption of the Commission's amended proposal.
This could be as early as the Telecoms Council on 26 February
but hopefully no later than ECOFIN on 9 March. My officials will
send the relevant texts to the Clerk of your committee as soon
as they are available.
16 February 1998
3 CAD2 directive-doc no 9406/97 COM(97)71: "Expanded
matrix" directive-doc nos 7441/96 COM(96)183 and 9578/97
COM(97)285; "Mortgages" directive-doc no 5743/96 COM(96)709. Back
Printed in Correspondence with Ministers, 11th Report,
Session 1997-98, p29. Back