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  • EU High-Level Forum Sets Out Vision for European Capital Markets

    The European Commission’s High-Level Forum on the Capital Markets Union has published an interim report setting out its vision for the future of European capital markets. The CMU is an EU initiative which aims to enhance integration of EU capital markets, further safeguard financial stability, strengthen the international role of the euro and diversify sources of finance for small- and medium-sized enterprises. The High-Level Forum was established in November 2019 and consists of experienced industry executives and international experts who will work together to propose policy recommendations designed to contribute to the CMU. The interim report identifies the following as key aims of the CMU:
    • Embracing new opportunities in the rapidly changing financial system;
    • Giving European citizens a better financial future by offering better opportunities to cater for long-term financial needs, better access to investment products and promoting entrepreneurship;
    • Leading capital markets globally, by making the EU a more attractive marketplace for businesses and investors; and
    • Building on the existing strengths of the EU, which include the ability of EU firms to sell products across EU borders using financial services passports and the role of the European Supervisory Authorities in integrating and developing EU capital markets.
    Going forward, the forum intends to focus on the more challenging aspects of the EU’s CMU Action Plan. These include tackling the challenges facing the following areas:
    • Financing for business: proposed measures include enhancing transparency and comparability of company data and supporting long-term investment vehicles and institutional investor participation;
    • Market infrastructure: proposed measures include improving the integration and efficiency of trading and post-trading; and
    • Retail investment: proposed measures include enhancing the engagement of retail investors through adequate occupational and personal pension products and developing retail investors’ financial literacy.
    The final High-Level Forum report will be published in May 2020.
    View the High-Level Forum's interim report.
    View details of the European Commission's Communication on progress in the Capital Markets Union.

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    TOPIC: Securities