Shearman & Sterling LLP | FinReg | Final Recommendations on EU Capital Markets Union Published
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  • Final Recommendations on EU Capital Markets Union Published

    The High Level Forum on the Capital Markets Union has published its final report setting out 17 recommendations aimed at moving the EU’s capital markets forward and completing the Capital Markets Union. The recommendations are grouped into four main clusters, which focus on: (i) creating a vibrant and competitive business environment; (ii) building stronger and more efficient market infrastructure; (iii) fostering retail investments in capital markets; and (iv) going beyond boundaries across the internal market.
    Examples of the 17 recommendations that fall within these groups include:
    • Setting up a digital platform to operate as a European single access point
    The ESAP would require companies to submit all public information through a single reporting channel to improve investors’ access to company data and as a result, expose issuers to a wider set of investors and improve capital allocation across the EU.
    • Improving the public markets ecosystem
    Companies, SMEs in particular, have recently been electing either to leave the regulated markets or not list at all because of concerns that the expense of the regulatory requirements and of launching an IPO in the regulated market outweigh the benefits of equity finance.Recommendations include revising the Prospectus Regulation, Market Abuse Regulation and revised Markets in Financial Instruments Directive and Regulation's regulatory framework to make public listing more attractive.
    • Building stronger and more efficient market infrastructure
    It is recommended that the European Commission undertakes a review of the Central Securities Depositories Regulation with a view to strengthening the CSD passport and making it easier for firms to make issuances in non-national currencies.

    The Commission intends to publish an action plan on the CMU in the fourth quarter of 2020.

    View the High Level Forum's Final Report.

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    TOPIC: Securities