Commission speaks on CMU: Jonathan Hill has spoken on the Capital Markets Union (CMU). He covered:

  • the change in direction and pace of the new Commission, with a focus on reviewing and bedding in existing reforms rather than introducing new regulation;
  • the importance of a single market for capital across the EU in encouraging jobs growth and attracting inward investment for SMEs and infrastructure projects;
  • measures to encourage long-term investment such as:
    • setting up a framework for an EU-wide securitisation market that singles out a category of highly transparent, simple and standardised products; 
    • reviewing the Capital Requirements Regulation to assess how appropriate the existing rules are for supporting long-tern finance; and 
    • initiatives to encourage the development of the European private placement industry;
  • tools to encourage investment in infrastructure such as ELTIFs;
  • how CMU will help SMEs to access additional funds; and
  • the importance of international co-operation and coherence in the EU capital market.

He concluded by saying that both financial services businesses and their regulators must be flexible and adaptable to the changing global environment so as to be ready to overcome novel challenges and take advantage of opportunities as they arise. (Source: The Capital Markets Union: Breaking Down the Barriers to Completing the Single Market)