An integrated market for financial services is imperative for the success of a dynamic and competitive economy. It is essential to enhance cross-border competition, improve access to markets, increase solvency margin requirements and step up the systematic cooperation of member states in supervision.
In December 2005 the European Commission published the White Paper of Financial Services Policy, which outlines the priorities in financial services by 2010. Member states have to transpose the existing legal provisions into their legislation. The EU is responsible for coordinating cooperation between member states in supervision of financial markets and institutions.
On 10 July 2007, the European Commission published its Solvency II framework directive proposal. This legislative proposal aims to replace the 14 existing directives on life and non-life insurance, reinsurance, insurance groups and bankruptcy with a single text and also introducing a new Solvency II regime. The Commission expects to implement the new regime by 31 October 2012. Similarly to the banking sector, the new regime will be based on a three pillar approach, with an emphasis on risk management and suitable solvency margin requirements. The main changes refer to supervisory review systems in insurance companies, their management, the supervision of business operations, calculating technical reserves, and the definition and amount of capital that insurance companies must have given the risks to which they are exposed. The Slovenian Presidency will work towards general approach by the end of its Presidency.
At the end of 2006 the European Commission published the White Paper on Collective Investment Undertakings, containing the necessary proposals for updating the current relevant directive (the so-called UCITS Directive). In March 2007 the Commission then published initial orientations and initiated a public discussion on the basis of which it will draft a legislative proposal, which is expected to be presented in spring 2008. During its Presidency, Slovenia will launch discussion on the proposed directive.
To ensure the smooth operation of the internal market in financial services, some outstanding issues with regard to financial stability and the regulation of the financial system need to be resolved. The Slovenian Presidency intends to continue to address issues of financial stability, particularly with regard to crisis management. It will also strive for further regulatory convergence of financial market supervision within the review of the so-called Lamfalussy framework.
