EC completed the mid-term review of the Capital Markets Union Action Plan. The mid-term review reports on the good progress made so far in implementing the 2015 Action Plan, with nearly two-third of the 33 actions delivered in twenty months. The review also sets timeline for the new actions that will be unveiled in the coming months. These will include a proposal for a pan-European personal pension product (PEPP) to help people finance their retirement. Furthermore, EC will continue its work on enhancing the supervisory framework for integrated capital markets, increasing the proportionality of the rules for listed small and medium enterprises and investment firms, harnessing the potential of fintech, and promoting sustainable investment.
After almost two years since the launch of the Capital Markets Union Action Plan, EC is presenting a number of key initiatives to ensure that the reform program remains fit for the purpose. EC will advance on outstanding actions under the 2015 Action Plan by putting forward legislative proposals on a PEPP, an EU-framework on covered bonds, and a securities law to increase legal certainty on securities ownership in the cross-border context. The EC Vice Presidents Jyrki Katainen and Valdis Dombrovskis also gave their opening remarks on the occasion. According to the EC Vice President Jyrki Katainen, “The review is about creating new ways to increase investments in Europe. It is about providing capital to different types of needs. It is also about creating new markets, such as sustainable finance which is one of the opportunities we have to unlock.” The mid-term review sets out the following nine new priority actions:
Strengthen the powers of ESMA to promote the effectiveness of consistent supervision across the EU and beyond
Deliver a more proportionate regulatory environment for small and medium enterprise listing on public markets
Review the prudential treatment of investment firms
Assess the case for an EU licensing and passporting framework for fintech activities
Present measures to support secondary markets for non-performing loans and explore legislative initiatives to strengthen the ability of secured creditors to recover value from secured loans to corporate and entrepreneurs
Ensure follow-up to the recommendations of the High Level Expert Group on Sustainable Finance
Facilitate the cross-border distribution and supervision of Undertakings for Collective Investment in Transferable Securities and alternative investment funds
Provide guidance on existing EU rules for the treatment of cross-border EU investments and an adequate framework for amicable resolution of investment disputes
Propose a comprehensive EU strategy to explore measures to support local and regional capital market development
Keywords: EC, Europe, Banking, Mid-Term Review, Securities, Capital Markets Union, Insurance, Action Plan
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