Memo #
31129

European Commission Publishes Capital Markets Union Package
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[31129]

March 14, 2018 TO: ICI Global EU Capital Markets Union Task Force
ICI Global Regulated Funds Committee
ICI Global Trading & Markets Committee
International Operations Advisory Committee
International Operations Working Group RE: European Commission Publishes Capital Markets Union Package

 

On 8 March and 12 March 2018, the European Commission (“the Commission”) published a package of measures under the auspices of its Capital Markets Union (CMU) initiative.

Communication on completing the CMU by 2019

The Commission published a Communication[1] and updated action plan[2] on the CMU initiative. The Communication provides an overview of the initiatives that are being pursued with the objective of completing the CMU by 2019. The Commission highlights these initiatives under the following three banners:

  • Making the most of the Single Market through new European products, labels and passports;
  • Supporting businesses and entrepreneurs through clearer and simpler rules;
  • More efficient supervision of EU capital markets.

The updated action plan lists adopted and proposed initiatives under the CMU. The following initiatives are of particular relevance to regulated funds and their managers:

Adopted

  • Revised regulation on European venture capital funds (EuVECA) and European social entrepreneurship funds (EuSEF);[3]
  • Simple, transparent and standardised securitisation (STS) regulation.[4]

Proposed

  • Pan-European Personal Pension (PEPP) Product Regulation;[5]
  • European Supervisory Authorities (ESA) Reform Regulation;[6]
  • Prudential Requirements for Investment Firms Regulation;[7]
  • Action Plan on Financing Sustainable Growth;[8]
  • FinTech Action Plan for a more competitive and innovative European financial sector;[9]
  • Package of measures on the issue and supervision of covered bonds;[10]
  • Package of measures to address barriers to the cross-border distribution of investment funds.[11]

More detailed memos on selected initiatives outlined above will be published over the coming weeks.

 

Giles Swan
Director of Global Funds Policy, ICI Global

 

endnotes

[1] Communication from the European Commission, Completing the Capital Markets Union by 2019 – time to accelerate delivery, dated 8 March 2018, available from https://ec.europa.eu/transparency/regdoc/rep/1/2018/EN/COM-2018-114-F1-EN-MAIN-PART-1.PDF

[2] Annex to Communication from the European Commission, Completing the Capital Markets Union by 2019, dated 8 March 2018, available from https://ec.europa.eu/transparency/regdoc/rep/1/2018/EN/COM-2018-114-F1-EN-ANNEX-1-PART-1.PDF

[3] http://europa.eu/rapid/press-release_IP-17-1477_en.htm?locale=en

[4] http://europa.eu/rapid/press-release_IP-17-1480_en.htm?locale=en

[5] http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52017PC0343

[6] https://ec.europa.eu/info/law/better-regulation/initiatives/com-2017-536_en

[7] https://ec.europa.eu/info/business-economy-euro/banking-and-finance/financial-supervision-and-risk-management/managing-risks-banks-and-financial-institutions/prudential-rules-investment-firms_en

[8] https://ec.europa.eu/info/sites/info/files/180308-action-plan-sustainable-growth_en.pdf

[9] https://ec.europa.eu/info/publications/180308-action-plan-fintech_en

[10] https://ec.europa.eu/info/publications/180312-proposal-covered-bonds_en

[11] https://ec.europa.eu/info/publications/180312-proposal-investment-funds_en