Fédération Européenne des Conseils et Intermédiaires Financiers

Dear Madam/Sir,

Our Federation represents approximately 300,000 financial services intermediaries

operating across the 27 EU Member States ( www.fecif.eu ).

As much as we welcome the legislative proposals of the European Commission on

establishing a new institutional framework for financial supervision in the EU and as
much we share the Commission’s objectives to enhance financial architecture in
the EU in an ambitious way, upgrading the quality and consistency of supervision,
we are extremely worried that financial intermediaries (600,000 to 650,000
professionals today) representing and servicing 50 to 100 millions EU consumers may
be excluded from the management process of the new three Supervisory Authorities
(ESMA, EBA and EIOPA – “ESA’s”) which will be set up.

We are ready to actively contribute to further refinements of the legislative proposals

and to provide our input into building effective new Supervisory Authorities with
appropriate participation of the representative of the industry. It will help a better
implementation – better understanding – of EU rules, and create a stronger image of
the EU amongst the Public.

People who know how the system works, representatives of the real economy would
add value to the work of the regulators.

Therefore, we have few general comments:

1. The plan raises questions regarding the institutional balance within the EU:
FECIF emphasizes that the Commission must continue to fulfill its duties as
guardian of Treaty guaranteed freedoms, in particular freedom to provide
services and freedom of establishment, and to act as the spokesman for the
Community, as opposed to national interest.

2. This means that the Commission must not abdicate or delegate its traditional
roles. Similarly, FECIF calls upon the Commission to reiterate its support for
Single Market freedoms, the principle of home-country control and the single
licence and passport regimes and, therefore, to condemn any attempt by
host States to “re-nationalize” supervisory competence.

3. Cross-border operators need to know that the Commission will act upon
complaints from individual companies and, where necessary, will promptly
institute infringement proceedings against Member States.

4. The new architecture will be expensive, as will the proposals which will
accompany it, it should not be at the cost of the creativity and dynamism of
cross-border providers. Needless to say that harmonized rules which set
maximum standards and should so prevent “gold-plating” by national
authorities are a preferable outcome to the “…differences in the national

FEDERATION EUROPEENNE DES CONSEILS ET INTERMEDIAIRES FINANCIERS

“Generali” Tower - Business Centre ● Avenue Louise 149/24 ● B-1050 Brussels, Belgium
Tel.: +32 2 535 76 22 ● Fax: +32 2 535 75 75 ● e-mail: fecif@skynet.be ● www.fecif.org
 Fédération Européenne des Conseils et Intermédiaires Financiers

transposition of Community Law stemming from exceptions, derogations,

additions or ambiguities in current Directives”.

5. FECIF agrees that these differences and exceptions must be identified and
removed, in particular with regard to pre-contractual and contractual
information disclosures.

6. Where a high standard is set Community-wide (taking into account the

specific features of each financial sector’s services), no exceptions,
derogations or other national provisions are required.

7. At present, FECIF members often find that national differences, derogations

and other measures render access to a host State market unnecessarily and
unjustifiably difficult, expensive and slow.

We reiterate the concerns expressed by EU intermediaries that, faced with a

preponderance of the banking sector, the ESA’s must also be aware of the
intermediaries’ perspective.

FECIF agrees to publication of this letter.

Yours sincerely,

Vincent J.Derudder
Secretary General

Fédération Européenne des Conseils et Intermédiaires Financiers

Generali Tower - Business Center - 12th Floor

Avenue Louise 149/24
B - 1050 Brussels (Belgium)
Tel.: +32 2 535 76 22
Fax: +32 2 535 75 75
Email: fecif@skynet.be
Web: www.fecif.eu
Blog: www.fecif.eu/blog

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