Frits Bolkestein Urges Cyprus To Press Ahead With Implementation Of EU Laws

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

20 February 2004

In a speech delivered to Bank of Cyprus representatives on Monday, EU Internal Market Commissioner, Frits Bolkestein urged the Cypriot authorities to press ahead with the implementation of EU rules on the protection of intellectual property, and the provision of financial services, ahead of its May 1 accession to the European bloc.

Mr Bolkestein made specific reference to legislation relating to accounting qualifications which was recently passed by the House of Representatives, but which contravenes EU laws on the topic, observing that:

"There has been much debate about this issue in Cyprus, but the legal situation is very clear: on May 1, 2004, all persons and companies carrying out statutory audits in Cyprus must fully meet the requirements set out in the 8th directive."

He continued:

"I therefore urge the executive and legislative branches of your government to work together to adopt all necessary measures by then. Good auditing practices are not a luxury: they are essential to investor confidence in markets."

Meanwhile, speaking with regard to the Financial Services Action Plan, Mr Bolkestein revealed that 36 of the 42 measures have been adopted, with legislation on investment services and transparency scheduled for adoption this summer.

"As a result, we shall have a truly integrated European market in financial services, covering banks, insurance companies, investment funds and securities dealers," he announced.

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