The European Commission on Monday unveiled new rules which will open up competition in financial services and make it easier for investment companies to operate across the 25-nation bloc.

Investment companies will be given the right to offer services across the 25 member states, based on the regulations of their home supervising authority alone, according to the executive arm of the European Union (EU).

Under the proposal, named "markets in financial instruments directive" in EU jargon, banks will also be allowed to directly compete with stock exchanges with EU "passports" allowing multilateral share trading facilities.

EU Internal Market Commissioner Charlie McCreevy stressed that the shake-up would also build in protections for consumers of financial services.

"They will provide a high level of protection for investors while keeping red tape to a minimum. They will also increase cross- border competition to the benefit of investors and issuers alike," he said in a statement.

The proposals will now go to the European Parliament and the European Securities Committee for three months of consultation.

Source: Xinhua