Section XVI

 

REGULATION OF FINANCIAL MARKETS

 

Article 70

 

Objectives and Principles of Regulation of Financial Markets

 

 

1. The Member States shall conduct agreed regulation of financial markets within the Union in accordance with the following objectives and principles:

 

           deepening economic integration of the Member States in order to create a common financial market within the Union and to ensure non-discriminatory access to the financial markets of the Member States;

 

           ensuring guaranteed and effective protection of the rights and legitimate interests of consumers of financial services;

 

           enabling mutual recognition of licenses in the banking and insurance sectors, as well as in the service sector in the securities market for securities issued by authorised authorities of one Member State on the territory of other Member States;

 

           identification of approaches to risk management in the financial markets of the Member States in accordance with international standards;

 

 

 

           determination of requirements for banking and insurance activities and activities in the securities market (prudential requirements);

 

           determination of the procedure for exercising supervision over the activities of financial market participants;

 

 ensuring transparency of activities of financial market participants. 2. In order to enable free movement of capital in the financial market,

 

the Member States shall apply the following basic forms of cooperation,

 

including:

 

           exchange of information, including confidential information, between authorised authorities of the Member States on the management and development of banking and insurance operations and activities in the securities market, control and supervision in accordance with an international treaty within the Union;

 

           carrying out agreed activities to discuss current and potential problems in the financial markets and to develop proposals to address them;

 

           carrying out by competent authorities of the Member States mutual consultations regarding the regulation of banking and insurance operations and activities in the securities market.

 

3. In order to achieve the objectives set out in paragraph 1 of this Article, the Member States shall, in accordance with an international treaty within the Union and with account of Annex 17 to this Treaty and Article 103 of this Treaty, harmonise their legislation on financial markets.