Towards a single market for finance : the financial services action plan, with evidence, 45th report, session 2002-03

The single market in financial services is a key part of the long-standing EU objective of an internal market which ensures the free movement of people, goods, services and capital.

The Committee's report finds that a single market in financial services should lower the cost of capital and borrowing, whilst providing greater consumer protection and increasing choice for borrowers and investors.

The Financial Services Action Plan (FSAP) will provide a major impetus towards this objective but also raises many important issues.

The quality of EU legislation will be crucial, since over-regulation could stifle innovation and lead to higher costs.

Other aspects also discussed in the report include: the global nature of financial markets, the position of London, the Investment Services Directive, implementation and enforcement, parliamentary accountability, the concept of a single European regulator, a clearing and settlement system, and agreement on international accounting standards.