European Union financial services update

In this month’s update on EU financial services developments we review the following: ISD update: the Commission’s plans for a radical overhaul of the Investment Services Directive; Investor protection: publication of a Commission’s communication on the application of the investor protection rules to investment firms; Insurance solvency margins: European Union plans to harmonise insurance companies’ solvency margins.

Robert Bell, Partner, Nabarro Nathanson Lacon House, Theobald’s Road, London WC1X 8RW Tel: 020 7524 6000 e.mail: r.bell@nabarro.com

ISD update

On 16 November the European Commission published a communication regarding updating the Investment Services Directive, Council Directive No. 93/22 (ISD). The communication aims to launch an extensive review of how the legislation, which has been in force for five years, may be updated to reflect the wide-ranging changes that have occurred in the investment services markets. Updating the ISD was identified by the Commission as one of its ten priorities for the next six months under the EU Financial Services Action Plan (FSAP).