ICI Global Praises Effort to Foster Growth in the European Corporate Bond Market

London, 24 November 2017—ICI Global Managing Director Dan Waters issued the following statement supporting a newly released report with recommendations designed to foster growth of the European Union’s (EU’s) corporate bond market. The report was prepared for the European Commission (Commission) by an Expert Group on Corporate Bond Markets (Expert Group). ICI Global served on the Expert Group, sharing the perspective of the long-term, buy-side investor.

“This report makes important recommendations to help widen and deepen Europe’s capital markets. We strongly endorse the report’s effort to foster market transparency and resilience by encouraging more trading activity on exchange for corporate bond exchange-traded funds (ETFs). The Commission and the European Securities and Markets Authority (ESMA) could encourage the removal of current obstacles to such trading.”

“We also are pleased that the report recognizes how the launch of a Pan-European Personal Pension Product could positively affect retail investment in corporate bonds. Additionally, the report notes the benefits that would result from the Commission taking an ambitious approach to lowering cross-border fund distribution barriers.”

“We look forward to further supporting this work, so that the recommendations translate into real progress towards enhancing the EU corporate bond market, to the benefit of Europe’s economies, investors, and citizens.”