European Banks welcome TEC Statements on Market Access

European banks welcome the supportive statements on the next enhancement of market access for broker dealers made by the European Commission and the US on the occasion of the Transatlantic Economic Council (TEC) today in Brussels.

Banks are satisfied that the process for carrying out the comparability assessment of EU and US securities regimes will be defined before the end of this year. As a long standing advocate of mutual recognition, the European Banking Federation (EBF) favours an increased access to securities markets which would proceed based on the principle of mutual recognition. The EBF believes that a more free-flowing transatlantic market on that basis will enhance competition and streamline financial services regulation to the benefit of all stakeholders.

"The EBF supports mutual recognition insofar as it can provide increased benefits to the largest possible number of European brokers in terms of business opportunities and cost reductions; it should also accommodate key European interests and concerns", said Guido Ravoet, Secretary General of the EBF.

Following the announcement by Daniel Price, US TEC Co-Chair, the EBF also awaits with interest the amendment of US domestic regulation that would provide relief from local US licensing requirements to foreign broker dealers engaging in cross-border business with certain sophisticated investors.

EBF is very supportive of progress made at EU level on the acceptance of US accounting standards; it welcomes the reference to maintaining an open investment policy in the transatlantic marketplace. EBF hopes that this liberal attitude flows through to the WTO talks in Geneva in the wake of the crucial signalling conference on services.

References to the importance for sovereign wealth funds (SWFs) to maintain transparent investment policies were also acknowledged at a time when European banks are developing closer relationships with these influential investors.

"We are pleased to see that the TEC, in combination with the ongoing EU-US Financial Markets Regulatory Dialogue (FMRD), continues to move the transatlantic financial services agenda forward. We look very much forward to the announced third meeting of the TEC next autumn", concluded Ravoet.

Set up in 1960, the European Banking Federation is the voice of the European banking sector, with over 30 000 billion EUR assets and 2.4 million employees in 31 European countries. The EBF represents the interests of some 5000 European banks: large and small, wholesale and retail, local and cross-border financial institutions.