On 21 April 2016, the European Commission published a speech given by Lord Hill, European Commissioner for the Directorate General Financial Services, Financial Stability and Capital Markets Union, on the Commission's review of the EU regulatory framework for financial services. Headline issues include that;
- The Commission plans to simplify EMIR without jeopardising its core purpose of reducing systemic risk in derivative markets as part of the EMIR review currently underway.
- The Commission plans to launch a consultation in May 2016 to identify the main barriers to funds passporting and will then improve passporting so that investors have more choice and enjoy lower charges, and investment funds can genuinely compete across borders.
- Lord Hill takes very seriously businesses' complaints that they are reporting and disclosing the same information in different ways to comply with different pieces of legislation. The Commission look to streamline reporting requirements, templates, and reporting formats, and for common IT tools to be used to lighten the compliance burden.
The Commission plans to hold a public hearing in May 2016, and to publish its next steps in Summer 2016.
On 25 April 2016, the European Commission published its first status report on its progress towards establishing a Capital Markets Union (CMU). The report sets out the actions adopted since the adoption of the CMU Action Plan in September 2015, the key initiatives scheduled over the rest of 2016 and the preparation of other CMU actions and closely related measures that will be delivered in 2017-18. The annex contains an overview of progress achieved for the CMU actions. The Commission plans to update the status report every six months. With the report, the Commission published a further speech by Lord Hill, which again noted that in May 2016, the Commission will consult on improving the passporting system for investment funds, including UCITS.
The Commission has also published a new edition of the Economic and Financial Stability and Integration Review, which focuses on the CMU and serves as a complement to its first status report.