EC to propose EU-wide consumer protection schemes
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The European Commission will announce proposals on Monday to boost consumer confidence in financial services, including improved protection for insurance policy holders, bank account holders and investors in the EU.
As part of its response to the crisis, the EC will propose a set level of protection for depositors in all European banks.
Currently there are 40 deposit protection schemes operating in the 27 EU countries. The Commission will come forward with proposals to ensure that all banks throughout the EU will provide a uniform level of protection to depositors.
Furthermore, the Commission’s proposals will ensure faster payouts in case of bank failure, better information to account holders and sound financing of the schemes.
The EC will also announce proposals to enhance EU investor compensation schemes.
Currently there are 39 investor compensation schemes in 27 member states for investors with varying levels of protection.
In order to ensure an adequate level of protection in the whole EU, the Commission will propose minimum rules on how these protection schemes should function.
The aim is to bring more clarity to the current system, faster payouts, a higher level of compensation and better information for investors.
The Commission will also publish a white paper on insurance guarantee schemes.
Currently, with no common EU rules on ISG in place, only 12 of the 27 member states operate one or more such schemes.
The white paper will set out ideas for a coherent framework in the EU on IGS in order to remedy existing loopholes and inequalities.
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Readers' comments (1)
Julian Stevens | 9 Jul 2010 3:35 pm
A good hard look at the present regulatory framework governing retail financial services wouldn't go amiss either.
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