Featured Product

    EC Publishes Action Plan for Capital Markets Union in EU

    September 24, 2020

    EC published the action plan to enhance the Capital Markets Union in EU over the coming years. The action plan proposes sixteen legislative and non-legislative actions with three key objectives. These objectives involve supporting a green, digital, inclusive, and resilient economic recovery by making financing more accessible to European companies; making the EU an even safer place for individuals to save and invest long-term; and integrating the national capital markets into a single market. EC also published a set of questions and answers (Q&A) and a factsheet on this action plan.

    EC has largely delivered on the actions announced in the 2015 action plan on the Capital Markets Union and the 2017 mid-term review of the action plan. The European Parliament and member states agreed on 12 out of 13 legislative proposals, although not all of them have maintained the level of ambition proposed by EC. However, certain barriers to a single market remain. even after all of the already proposed legislative measures start to apply. Therefore, the initial set of the Capital Markets Union actions needs to be complemented with new measures, including the ones that address the new challenges that have emerged. With this new action plan, EC sets out a list of measures to make decisive progress toward completing the Capital Markets Union. The action plan includes the following key actions: 

    • As part of the various measures to support a green, digital, inclusive, and resilient economic recovery by making financing more accessible to companies, EC will adopt a legislative proposal in the third quarter of 2021 to set up a European single access point (ESAP). This platform shall provide seamless, EU-wide access to the relevant financial and sustainability-related information disclosed to the public by companies, including financial companies.
    • As part of the review of Solvency II, by the third quarter of 2021, EC will assess whether the legal framework could be amended to further promote long-term investment by insurance companies, without harming financial stability and policyholder protection. In its work on implementing Basel III, when reviewing the Capital Requirements Regulation and Directive (envisaged for adoption by the first quarter of 2021), EC will apply the flexibility embedded in Basel III to ensure that appropriate prudential treatment of long-term small and medium size enterprise (SME) equity investments by banks.
    • To facilitate access to finance for SMEs, by the fourth quarter of 2021, EC will analyze the merits and feasibility of setting up a referral scheme to require banks to direct SMEs whose credit application they have turned down to providers of alternative funding.
    • To scale up the securitization market in EU, by the fourth quarter of 2021, EC will comprehensively review the securitization framework for simple, transparent, and standardized (STS) and for non-STS securitizations.
    • EC will work toward an enhanced Single Rulebook for capital markets by assessing the need for further harmonization of EU rules and monitoring progress toward supervisory convergence. It will take stock of what has been achieved in fourth quarter of 2021 and consider proposing measures for stronger supervisory coordination or direct supervision by ESAs. EC will also carefully assess the implications of the Wirecard case for regulation and supervision of capital markets and act to address any shortcomings identified in the EU legal framework.

    Establishing the Capital Markets Union is essential for supporting a resilient and inclusive economic recovery and the green and digital transition. EC will start work on the actions announced in this action plan by launching public consultations on the legal framework for European long-term investment funds and non-bank insolvency shortly. EC will complement its regular reporting of progress on legislative action with monitoring of how EU capital markets are evolving, based on a set of targeted indicators.

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, Action Plan, Capital Markets Union, ESG, Climate Change Risk, Solvency II, CRR/CRD, Basel, Securitization, Single Rulebook, Sustainable Finance, EC

    Featured Experts
    Related Articles
    News

    APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness

    APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).

    December 02, 2021 WebPage Regulatory News
    News

    EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance

    The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).

    December 01, 2021 WebPage Regulatory News
    News

    FSB Sets Out Good Practices for Crisis Management Groups

    The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.

    November 30, 2021 WebPage Regulatory News
    News

    APRA Penalizes Heritage Bank for Incorrect Reporting of Capital

    The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Updates Timeline for Implementation of Certain Basel Rules

    Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.

    November 29, 2021 WebPage Regulatory News
    News

    EC Defers Adoption of Regulatory Standards for Disclosures Under SFDR

    EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.

    November 29, 2021 WebPage Regulatory News
    News

    FCA Releases MIFIDPRU Application Forms and Third Set of Rules on IFPR

    The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Capital Adequacy Standards for Banks

    The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.

    November 29, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.

    November 29, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7751