Explanatory Memorandum to COM(1999)748 - Amendment of Council Directives 85/611/EEC, 92/49/EEC, 92/96/EEC and 93/22/EEC as regards exchange of information with third countries - Main contents
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| dossier | COM(1999)748 - Amendment of Council Directives 85/611/EEC, 92/49/EEC, 92/96/EEC and 93/22/EEC as regards exchange of information with third ... |
|---|---|
| source | COM(1999)748  |
| date | 10-01-2000 |
The exchange of information with third countries. Directive 98/33/EC of 22 June 1998 amends, inter alia, Article 12 i of directive 77/780/EEC on the co-ordination of laws, regulations and administrative provisions relating to taking up and pursuit of the business of credit institutions.
The aim of such an amendment is to modify the rules on the exchange of confidential information, within the framework of a co-operation agreement, with competent authorities or bodies of third countries.
In fact, the capability of exchanging confidential information only with the corresponding competent authorities of third countries has proved to be too restrictive. It is important to provide the possibility of exchanging information between the competent authorities and authorities or bodies which, by virtue of their function, help to strengthen the stability of the financial system.
Competent authorities within the European Union, in the performance of their tasks, may exchange confidential information directly with supervisory authorities of other financial sectors, with authorities in charge of overseeing liquidation and bankruptcy procedures and with other relevant persons such as auditors and receivers. The need for exchanging confidential information with the said entities may also occur in cases where they are located in third countries.
Article 12 i of directive 77/780/ECC as replaced by Article 1 of directive 98/33/EC eliminates some differences between regulations on the exchange of information within the European Union with third countries.
According to the above-mentioned Article 'Member States may conclude co-operation agreements providing for the exchange of information with the competent authorities of third countries or with authorities or bodies of third countries as defined in paragraph 5 and paragraph 5a' of Article 12 of directive 77/780/EEC.
This means that the exchange of confidential information may take place, within the framework of a co-operation agreement, between competent authorities of Member States and the following entities:
- authorities with public responsibility for the supervision of financial institutions other than credit institutions;
- bodies involved in the liquidation or bankruptcy of financial institutions;
- persons responsible for carrying out statutory audits of the accounts of financial institutions;
- authorities responsible for supervising the bodies involved in liquidation and bankruptcy of financial institutions;
- authorities responsible for supervising persons charged with carrying out statutory audits of financial institutions.
The exchange of information may occur only where several conditions are met:
- professional secrecy regulations similar to those provided for in the relevant directives are applicable to the recipient authority;
- information is requested for supervisory purposes.
In addition where the information originates in another Member State, it may not be disclosed without the express agreement of the competent authorities which have communicated it and, where appropriate, solely for the purposes for which those authorities gave their agreement.
Provisions similar to those amended by Article 1 of Directive 98/33/EC exist in other Directives relevant to the financial system: Investment Services Directive (93/22/EEC); UCITS Directive (85/611/EEC), Third Non-life Insurance Directive (92/49/EEC) and Third Life Assurance Directive (92/96/EEC). In fact, the so-called post BCCI directive (95/26/EC) amended sectoral directives with the aim, inter alia, of introducing across-the-board regulations in the field of the exchange of confidential information.
Therefore, the Council, in the context of the negotiation of the above-mentioned directive (95/26/EC), has invited the Commission to take all necessary actions in order to establish a uniform regulation of all financial sectors avoiding contradictions in the rules concerning the exchange of confidential information with entities belonging to third countries.