Financial Services Action Plan (FSAP)

Definition of Financial Services Action Plan (FSAP)

The Financial Services Action Plan (FSAP) is a strategic initiative by the European Union (EU) aimed at creating a single market in financial services. Launched in 1999, the FSAP includes a series of legislative and non-legislative measures to strengthen the integration, efficiency, and stability of financial markets within the EU. The plan ultimately aims to boost growth, reduce costs, and improve the competitiveness of EU financial markets.

Examples

1. Markets in Financial Instruments Directive (MiFID):

   • Part of the FSAP, MiFID provides a harmonized regulatory framework for investment services within the EU.

2. European Securities and Markets Authority (ESMA):

   • ESMA was established as an outcome of FSAP initiatives to create a unified regulatory body governing securities markets in the EU.

3. Capital Requirements Directive (CRD):

   • This directive, aimed at implementing Basel II standards, is another critical element of the FSAP, focusing on bank capital adequacy and risk management.

Frequently Asked Questions (FAQs)

What was the primary goal of the FSAP?

The main objective of the FSAP was to create a single market for financial services within the European Union, enhancing financial market integration, improving competitiveness, and ensuring market stability.

When was the FSAP launched?

The FSAP was launched in 1999 by the European Commission.

How many measures are included in the FSAP?

The FSAP consists of 42 different measures, including both regulatory and non-regulatory initiatives, aimed at achieving its objectives.

Who oversees the implementation of the FSAP?

Multiple bodies oversee FSAP’s implementation, including the European Commission, European Parliament, and various financial regulatory bodies such as ESMA.

Why was MiFID significant in the context of FSAP?

MiFID, part of the FSAP, plays a crucial role in providing a harmonized framework for the provision of investment services across the EU, enhancing market transparency and investor protection.

Related Terms

1. Markets in Financial Instruments Directive (MiFID):

   • A regulatory framework to enhance the efficiency, competitiveness, and transparency of financial markets in the EU.

2. Basel II:

   • An international banking regulation standard that sets forth risk and capital management requirements.

3. European Securities and Markets Authority (ESMA):

   • An independent EU Authority that helps ensure the stability of the EU financial system by enhancing investor protection and promoting stable financial markets.

4. Capital Requirements Directive (CRD):

   • EU regulation that sets out prudential standards for banks, building on the Basel III framework.

Online References

1. European Commission – Financial Services Action Plan
2. ESMA – European Securities and Markets Authority
3. MiFID – Markets in Financial Instruments Directive

Suggested Books

1. “The New Financial Regulation: The Politics of Institutional Change” by Bettina Lange, Hélène Hatzisavvides, and Claire Annesley

   • This book discusses key regulatory changes, including those prompted by the FSAP, and the political dynamics influencing their implementation.

2. “European Banking and Financial Law 2e” by Matthias Lehmann and Christoph Kumpan

   • This text offers an overview of European banking and financial regulation, touching on the impact and initiatives of the FSAP.

3. “EU Banking and Insurance Insolvency” by Gabriel Moss, Bob Wessels, and Matthias Haentjens

   • The book provides insights into the FSAP’s influence on insolvency regulation within the EU financial sector.

Accounting Basics: “Financial Services Action Plan (FSAP)” Fundamentals Quiz

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