2.1. Legal Affairs Committee (Mr. G. Fischer)

Mr. Fischer reminded the members of the holding of a joint meeting of the Legal Affairs and External Relations Committees on December 3, 2001.

2.1.1. Insurance Intermediaries

The draft Directive includes a definition of "intermediary" considered to be too wide-ranging. A wide interpretation of the concept could assimilate all sorts of middlemen (car dealers e.g. should be excluded) or retailers. Fully independent intermediaries only should be considered in the draft. Intermediaries whose main business is insurance sales should be covered; it is, however, difficult to define a "main business", particularly when insurances are accessory items to main contracts (credit contracts).

MCOB Recommendation and Board Decision

The LAC will have to consider whether creditors could be assimilated to insurance intermediaries: the VFN took the view that this might well be the case. The French Association on the contrary supported the opposite point of view. A final position must be reached.

2.1.2. Consumer Credit - Global Portfolio Insurance Proposed by DG SANCO

Eurofinas opposed this idea in its Position Paper. The Federation wants to show that the decision of financing bears no relation to the existence of an insurance coverage. For that purpose, an enquiry was made amongst members (to be finalized with the LAC), which demonstrates that insurance is not compulsory in Eurofinas' member countries (risks contemplated: "events of life": unemployment, divorce, disease). "Compulsory" insurances would result in a situation where credit granting would be included in a kind of "social policy framework" (not acceptable for the industry). A paradoxical consequence would be that people with an "unstable income" would be penalized with higher premiums!

MCOB Recommendation

The LAC will finalize the Federation's enquiry.

BOARD Decision

A lobby action needs to be launched by the NA with their local authorities (UK - NL - S already did!) These governments are reluctant to endorse DG SANCO's ideas.

Eurofinas to meet Mr. Udo Bader (DG MARKT). See attached report of meeting with Mr. Campogrande on November 29, 2001.

2.1.3. Green Paper on "Fair Commercial Practices"

The Secretariat will take part in a Special Hearing on December 7, 2001. The EU Commission wishes to improve the workings of the Internal Market (i.e. a better and more compatible local implementation of enacted Directives).

Two solutions are put forward:

· To favour the development of vertical Directives, or
· To favour a "mixed approach" (with "general clauses" taking precedence over the other Directives).

Eurofinas takes the view that financial services are already extensively regulated. "General clauses" -being too wide-ranging- are useless. A "business approach" is advisable (the Consumer Credit Directive is under review).

MCOB Recommendation and Board Decision

The LAC will study the Green Paper and the Secretariat will report on the Hearing.

2.2. External Affairs Committee (Mrs. R.-M. Gelpi)

Mrs. Gelpi reported on the Seminar held in Charleroi November 13-14, 2001 (see Secretariat Report: doc. 01112001/E, November 20, 2001). Topic discussed: "The indebtedness phenomenon". The credit industry clearly expressed its views; Mrs. Gelpi and Mr. Wilkinson made presentations at the Seminar.

Mr. Van Lysebettens (DG SANCO) expressed the view that it was not workable to draft a new piece of legislation based on pieces from the various national legislations. He, therefore, referred to the principle of "optimal harmonization", which would make it possible for EU States to adopt additional pieces of legislation in matters not covered by the "general text".

To be noted that on November 26, 2001, the EU Council approved a Resolution "on credit and consumers' indebtedness" (possible follow-up of Charleroi Seminar).

According to Mrs. GELPI, these matters do not appear to be a priority for the next Spanish Presidency.

MCOB Recommendation and Board Decision

The ERC needs to carry on its lobbying activity with the EU Commission, EU Council and EU Parliament.

2.3. Credit Risk Agencies Working Group

In the absence of Mr. Wilkinson, Mrs. Gelpi reported that Mr. Wilkinson made a very technical and neutral speech on Credit Risk Bureaux in Charleroi.

The Chairman, Mr. d'Ottaviano reported on a meeting he had recently with Mr. Casanovas, Chairman of ASNEF. This Association expressed the wish that Eurofinas be more involved in matters related to credit bureaux; it is clear that Eurofinas cannot engage in an actual business activity in this field; it could nevertheless enter into a kind of partnership with Accis.

MCOB Recommendation and Board Decision

A meeting of the C.R.A.W.G. should be organized. On the agenda: ways and means in order to define a role for Eurofinas next to Accis:

• Update on the current operation of the various credit risk agencies in Europe.
• Analysis of the trans-flow proceedings for cross-border exchange of data information amongst credit bureaux (neutrality of Eurofinas)
• "Key-factor" system already functioning amongst Accis members.
• "Validation" of this formula by Eurofinas "taking the torch" for the consumer credit industry if endorsed by ACCIS.

2.4. Statistics and Regulation Committee ( Mr. U. Filotto)

Mr. Filotto reported that Mrs. Valette, Secretariat's staff member, would benefit from ASSOFIN's experience in statistics collection and handling. The date of the "training" was provisionally postponed for unexpected reasons (illness of ASSOFIN's Mrs. Van Toorenburg).

Mr. Filotto deeply regretted the poor attendance at the last meeting of his Committee in September (4 delegates) He also stated that figures are unreliable, not comprehensive, and obsolete. Statistics are a major tool to support and enhance the credibility of Eurofinas' lobby action.
It is recalled that the Secretariat compiled a list of persons expressly in charge of collecting and transmitting statistics within each National Association.

Glossary: the Secretariat already proposed a basis for such a set of useful definitions to be used when collecting statistics. This glossary should be extended. This can be achieved with the support of some members to be nominated.

MCOB Recommendation

Statistical data need to be improved. If necessary, incomplete statistics will be published (with "n.a." for missing data related to given countries).

The Board will nominate 3 persons in charge of writing the definitions to include in the Glossary.

BOARD Decision

Are nominated: Messrs. VAQUER (ASF)
DECHEVRE (UPC)
MATHER (CCTA)

2.5. European Auto Forum

Mr. Klaus Berning, EAF Chairman, resigned.

MCOB Recommendation

Mr. Spielrein should contact Mr. Berning in order to settle the issue of a possible successor.
The latter could be: Mr. de Rousset-Hall (UK), member of CCTA and Chairman of the automotive section of FLA.
The E.A.F. "Study Day" can be a session of the "One-Day Business Forum" to be organized next year (see below).

3. One-Day Business Forum

Leaseurope organised a One-Day Business Forum last year (85 participants) and will hold the second Forum on June 5, 2002.

MCOB Recommendation

It is advisable to organize a comparable event (business and market oriented)
Date: Thursday May 16, 2002

BOARD Decision

The Secretariat to prepare the programme.

Proposals for topics are:

• "Integrated workflow" (cutting costs, i.e.: customers relationship; call centers; quality management; search for efficiency; process mapping (six sigma: Mr. Spielrein)
• Credit scoring techniques (CCTA expertise)

A cocktail meeting to be organized the day before (contact with EU officials).

4. Capital Adequacy

The Chairman reported on a meeting he had on November 29, 2001 with Mr. Campogrande (DG MARKT) - Report attached.

The members had a long debate about the opportunity, the ways and means to be adopted in order to develop further lobbying action in this important matter.

It is recalled that Leaseurope asked the Bocconi University to carry out a detailed technical analysis in order to demonstrate that leasing is a "safe" operation (losses are more limited than in the banking sector). This analysis was presented in Warsaw.

Due to its technical expertise, the consumer credit industry may well pretend using the Internal Rating Based Approach (advanced); this, obviously, needs statistical and empirical demonstration and simulations.

Messrs. Lecomte and Angerhausen expressed some reservations about the opportunity and feasibility of such a study. Mrs. Gelpi questioned its usefulness for companies being part of larger consolidated groups.

MCOB Recommendation

Messrs. Karsten and Filotto will examine the feasibility of using

• an existing analysis achieved for the benefit of ASSOFIN members
• an existing consulting study launched in Germany for the benefit of Bankenfachverband members.

BOARD Decision

After a vote, it was decided to go ahead with the project. Budget: +/- Euro 30,000 (to be paid from the Federation's reserve fund).

The Board members will help Messrs. Karsten and Filotto to collect the requested data within a sample of individual companies in a couple of significant countries in the EU.

Deadline: March 15, 2002

The Secretariat will provide updated information on the "State of play" re: draft Directive on "Financial conglomerates".

5. Financial Matters

5.1. Financial situation (October 31, 2001) doc. circulated to members

Surplus: Euro 14,158 (subject to Turkey's payment of 2001 fee: Euro 12,750)
To be added - Warsaw surplus: Euro 8,770

MCOB Recommendation

To adopt the financial situation.

BOARD Decision

Agreed to adopt the financial situation.

5.2. Budget 2002 doc. circulated to members

2001 - 2002 increase: + 2,47%

To be taken into account:

• reduction of Europafactoring 's contribution (from Euro 34,000 to Euro 15,000)
• ACCIS contribution (Euro 7,000)

The GA in Warsaw accepted a subscription fee calculation based upon a fixed amount per NA (50% budget) and a variable amount per NA (50% budget). The letter refers to turnover per NA.

In a letter dated November 8, 2001, Mr. G. Turinetto, Chairman of ASSOFIN, contested the results on which to base the fees calculation (fees are no longer based on the proposals formulated in Warsaw). This is due to "last minute" changes in statistical data provided by certain Associations. Mr. Turinetto said that "modification of the actual fee structure can be implemented only if the figures given by the NA are officially certified…. he formally asked that for the "figures to be stabilized and made reliable". As a consequence, Mr. Filotto was not mandated by his Board to approve Eurofinas' budget in its present state.

MCOB Recommendation

In order to solve the problem, the following is proposed and agreed upon:

• Statistics of every NA will have to be signed by the Chairman of the NA. This will have to be validated by a third party entity (to be defined, e.g. Secretary General or Treasurer).
• The budget, as proposed, is approved by the MCOB and there is a recommendation to the Board to adopt it.

BOARD Decision

The Board adopted the budget.

The Federation will prepare a "Rules and Tools" document helping to develop a reliable and accurate statistics collection within Eurofinas.

ASSOFIN will only pay 50% of the budget proposal as formulated at the GA. The situation shall be reconsidered at mid-year for subscription fees related to the 2nd semester.

5.3. Warsaw Financial Results

There is a surplus of Euro 8,770.

The Chairman and Mr. Dressler congratulated the Secretary General for his excellent work in such difficult circumstances (events of September 11, 2001).

6. Conferences

6.1. Salzburg (2002)

Programme: a draft programme is circulated to members.

Suggestions for topics:

• Ethics/Deontology in advertising
• Debt collection
• Value of code of conducts
• Development of cross-border
• Consumer credit after almost one year after the introduction of the Euro.

Suggestions for speakers:

• Prof. Hissing (European Central Bank) instead of Dr. Walter = Dr. Karsten
• Dr. Keiter (?) (Austria Central Bank) = Mrs. Gelpi
• No workshops on Monday afternoon.

6.2. Morocco (2003)

The members welcomed the invitation of the Moroccan Association; the Secretariat will officially write to the Association.

7. Next Meetings

• MCOB February 6, 2002
• Board April 23, 2002
• One-Day Business Forum May 16, 2002
• MCOB June 11, 2002

Attachment: Report on the Meeting with Mr. Campogrande (DG SANCO)