Activites

• 1997/03/26 Final act published in Official Journal
  • Directive 1997/9
  • OJ L 084 26.03.1997, p. 0022
• 1997/03/03 Final act signed
• 1997/03/03 End of procedure in Parliament
• 1997/02/19 Decision by Parliament, 3rd reading
  • T4-0044/1997 summary

    In adopting the report by Mr James JANSSEN van RAAY (UPE, NL) Parliament approved the joint text achieved in conciliation with the Council on a directive providing for the establishment of an investment compensation scheme intended to protect investors in the event of bankruptcy or fraud. A minimum level of protection is to be assured (ECU 20 000) for investors, in particular small investors, in the event of failure of an undertaking for reasons not associated with the investment itself. The system would be financed by the firms. The implementation of the directive will be subject to the principle of checks by the country of origin. The proposed directive seeks also to harmonize the levels of protection. Parliament ensured that the provisions of the directive are largely in line with those of another directive on the deposit guarantee schemes and the deletion of the export ban clause which prevents firms from offering the level of protection of the Member State of origin when it is higher in another Member State providing a lower level of protection. Lastly, a compromise was reached which will apply to the two directives and will be implemented for the end of 1999. Compromise was also reached on three other amendments concerning the calculation of the claim, the speed of payment of the compensation and a rapid review procedure in the event of disturbances on the market. �

• 1997/02/18 Debate in Parliament
  • Debate in Parliament
• #1987
• 1997/02/17 Council Meeting
• 1997/02/12 Report tabled for plenary, 3rd reading
  • A4-0047/1997
• 1997/01/28 Joint text approved by Conciliation Committee co-chairs
  • 3602/1997
• 1996/12/18 Formal meeting of Conciliation Committee
• #1922
• 1996/05/13 Council Meeting
• 1996/03/12 Debate in Parliament
  • Debate in Parliament summary

    In recalling the main aims of the proposal the rapporteur, Mr Janssen van Raay (EPP, NL), touched on the subject of protection for small investors in the event that small investment companies were no longer able to honour their commitments. The rapporteur welcomed the fact that an agreement had already been reached with the Commission on all the main points. He also raised some of the less significant aspects of the proposal that had still to be resolved (non-compliance with obligations should not solely be linked to financial problems, the question of considering the monetary value, etc.). Commissioner Monti considered that the text being proposed would constitute one of main pillars of the internal market in respect of the protection of securities. He went on to state that the Commission could not accept the amendments tabled by Parliament and thought that Amendments Nos 1 to 3 and 5 to 7 would create serious distortions in relation to the directive on bank guarantee funds. Amendment No 4, which referred to the ‘market value’, would prove extremely difficult to implement and the Commissioner preferred to leave it to the Member States to define the criteria for determining market value. The Commissioner also took the view that Amendment No 8 provided no additional protection for investors. Finally, Commissioner Monti welcomed the fact that Parliament had adopted the text in its original form. Had this not been the case he could have foreseen a long and difficult process of conciliation with the Council.

  • T4-0113/1996 summary

    In adopting the report by Mr James JANSSEN van RAAY (EPP, NL) the European Parliament adopted several amendments to the common position of the Council, including an amendment adopted at first reading introducing a definition of the term "branch". The other amendments adopted essentially require that: - the investor-compensation schemes introduced have the power to determine whether or not an investment firm appears to be unable to meet its obligations; - the value of an investor's claim is calculated in accordance with current market rates: - the exclusion of a firm from membership of an investor protection scheme be immediate (as opposed to the twelve-month period provided for by the common position); - investors be compensated as soon as possible: the three-month period referred to in Article 9(2) should run from the date of the determination that the investment company was unlikely to meet its obligations. �

• 1996/02/21 Vote in committee, 2nd reading
  • A4-0047/1996
• 1995/12/14 Committee referral announced in Parliament, 2nd reading
• #1874
• 1995/10/23 Council Meeting
  • 09637/1/1995 summary

    The Council's common position adopted the approach retained by the Commission in its amended proposal, in other words bringing the provisions into line with the corresponding provisions in Directive 94/19/EC on deposit guarantee schemes. The Council retained Parliament's amendments concerning, in particular: the concept of "investment firm", the addition of the definition of a "branch", the application of the home country control principle, the inclusion of a reference to the return to investors of "negotiated" instruments belonging to them and the need to work actively to combat financial fraud. Furthermore, with a view to ensuring as much coherence as possible with Directive 94/19/EC and improving the transparency of the text, the Council included the following provisions in its common position: - transitional measures were authorised in certain cases, increasing the level of cover from ECU 15 000 to ECU 20 000; - if a compensation scheme had notified one of its members of its intention to exclude it, it should nevertheless guarantee its cover during the period of notice; - the host Member State may, during a limited period, prevent branches of investment firms of other Member States from offering a higher level of investment cover than that proposed by the local system; - the supplementary cover linked to the supplementary scheme would continue to apply even if the investment firm was excluded from the scheme in the host Member State where supplementary cover was sought; - the Member States may exclude from cover funds (but not instruments) in currencies other than those of the Member States or the ecu; - in exceptional circumstances, a compensation scheme may apply to the competent authorities for a three-month extension of the time limit fixed for paying investors' claims, which was normally restricted to three months; - if an investor was charged with laundering money, the compensation scheme may suspend any payment of a claim by this investor pending a judgement; - Member States should limit the use in advertising of information relating to compensation schemes; - Member States should ensure that investors had the right to bring actions against compensation schemes; - the definition of the concept of "joint investment business" replaced that of "joint investment"; - in order to represent an acceptable alternative to an investment compensation scheme, systems based on solidarity which guaranteed the solvency of certain credit establishments should respect certain conditions; - the minimum period that the compensation scheme may fix for the submission of claims may not be less than five months. �

• #1846
• 1995/05/22 Council Meeting
• 1994/12/14 Modified legislative proposal published
  • COM(1994)0585 summary

    The amended proposal took account of the opinion of Parliament which, with a view to achieving consistency, had stressed that the proposal should be considered with reference to other proposals for Community legislation in the financial services sector. As a result of this, certain measures contained in the amended proposal relating to investor-compensation schemes had been brought into line with the corresponding provisions in Directive 94/19/EC on deposit guarantee schemes. Without making any significant changes to the essential principles underlying the initial proposal, the amendments introduced by the Commission incorporated, wholly or in part, the amendments which Parliament had put forward in respect of the following points: - the definition of the "investment firm" was revised, it being stated that this concept was already defined in the Directive on investment services; - the definition of a "branch", as contained in the investment services Directive, was included in the proposal; - a definition was added for "joint investment"; - authorization was to be based on the home-country control principle; - it was no longer to be necessary for a credit institution which provided investment services to adhere to two different schemes, namely that provided by the present Directive and that established by Directive 94/19/EC, once a single system was set up which met the conditions of both Directives; - the minimum harmonized level for compensation was fixed at ECU 20,000 per investor; - the option for branches to supplement the level of cover provided in their Member State of origin in order to attain the (higher) level of cover existing in the host Member State; - investment companies should themselves finance the compensation schemes, provided that the cost burden for the payment of compensation to investors, in the event of default of the investment companies, did not compromise the stability of firms which were in other respects financially sound. �

• 1994/04/19 Debate in Parliament
  • Debate in Parliament
  • T3-0218/1994 summary

    Parliament adopted the report by Mr COONEY on investor compensation schemes. �

• 1994/04/05 Vote in committee, 1st reading/single reading
  • A3-0209/1994
• 1993/11/16 Committee referral announced in Parliament, 1st reading/single reading
• 1993/09/22 Legislative proposal published
  • COM(1993)0381 summary

    OBJECTIVE: to protect investors following the failure of an investment firm. CONTENT: this Directive is a necessary supplement to the single authorisation system based on supervision by the home country introduced by Council Directive 93/22/EEC on investment services in the securities field. It requires Member States to set up one or more investor compensation schemes. All investment firms supplying investment services must belong to this scheme or schemes (credit institutions may be exempted if they already belong a protection scheme which guarantees protection at least equivalent to that provided under a compensation scheme and if they fulfil certain specific conditions). The Directive therefore confirms the principle of supervision by the home country in the matter of investor compensation: the scheme(s) of the home country is (are) to cover investment activities performed by domestic companies in other Member States, whether or not transactions are performed by branches or as a result of the freedom to provide cross-border services. The compensation scheme operates when it is determined that an investment firm is unable, or may no longer be able, to meet its obligations arising out of investors' claims. If the investment firm is also a credit institution, the home Member State decides which Directive should apply to money claims: the above-mentioned Directive or the Directive governing deposit-guarantee schemes. No claim in respect of a single amount is eligible for compensation under both Directives. The Directive sets a Community minimum level of compensation per investor, in principle of ECU 20 000, while at the same time authorising Member States to provide for a higher level of compensation if they so wish. However, certain categories of investors may be excluded by Member States from the scheme's coverage or may be afforded a lower level of coverage. The arrangements for organising and financing schemes are left to the discretion of the Member States. Procedures are to be followed where an investment firm fails to comply with the obligations incumbent on it as a member of a scheme (going as far as exclusion). The coverage applies to the investor's aggregate claim, irrespective of the number of accounts, the currency and the location in the Community. In principle, joint accounts are divided equally among the investors. An investor's claim must be met within three months of the date of establishment of the non-availability of the funds. Investors may be liable to submit their claims within six months of this same date. The fact that this period has expired may not, however, be invoked by the scheme to deny cover to an investor. The Commission is required to submit a report on the application of this Directive by 31 December 1999 at latest. Source: European Commission - Info92 08/95 �

Documents

• Legislative proposal published: COM(1993)0381
• Committee report tabled for plenary, 1st reading/single reading: A3-0209/1994
• Debate in Parliament: Debate in Parliament
• Decision by Parliament, 1st reading/single reading: T3-0218/1994
• Modified legislative proposal published: COM(1994)0585
• Council position published: 09637/1/1995
• Committee recommendation tabled for plenary, 2nd reading: A4-0047/1996
• Debate in Parliament: Debate in Parliament
• Decision by Parliament, 2nd reading: T4-0113/1996
• Joint text approved by Conciliation Committee co-chairs: 3602/1997
• Report tabled for plenary, 3rd reading: A4-0047/1997
• Debate in Parliament: Debate in Parliament
• Decision by Parliament, 3rd reading: T4-0044/1997
• : Directive 1997/9
• : OJ L 084 26.03.1997, p. 0022

History

(these mark the time of scraping, not the official date of the change)