What is the primary purpose of the Financial Services Action Plan (FSAP)?

The primary purpose of the Financial Services Action Plan (FSAP) is to harmonize financial services rules across EU member states. This initiative was designed to create a more integrated and competitive financial market within the EU by ensuring a consistent regulatory framework. By harmonizing rules, the FSAP aims to remove barriers to cross-border financial services and promote efficient financial markets, which can facilitate better competition and protect consumers.

The FSAP encompasses a wide range of financial services, including banking, insurance, and investment services, aiming to create a single market in financial services that encourages growth and stability across the European Union. This harmonization is essential for businesses operating in multiple jurisdictions within the EU, allowing for easier compliance with regulations while maintaining high standards of consumer protection and financial stability.