ABSTRACT
The basic elements of a common market for financial services were contained in the Rome Treaty: the right of establishment, Article 52; the freedom to supply services across borders, Article 59; and the free movement of capital, Article 67. However, the financial services sector (banking, insurance, fund management and investment services) has been one of the areas where in practice progress has been slowest; despite the treaty provisions, a comprehensive common market for such services did not emerge. The three main impediments have been exchange control limiting the free movement of capital, limitations on cross-border trade in financial services, and various barriers to the free location of financial institutions and other suppliers of financial services.
