Capital Markets Union What s the plan?

Transcription

1 Capital Markets Uio What s the pla?

2 2 Capital Markets Uio What s the pla? Capital Markets Uio What s the pla? The Europea Commissio has issued its Actio Pla o Capital Markets Uio, outliig the steps to be take i order to establish a sigle market for capital i all 28 member states of the EU. The Actio Pla follows a Gree Paper o Capital Markets Uio which was issued i February 2015 ad separate cosultatios issued at the same time o the Prospectus regime ad the proposed EU framework o simple, trasparet ad stadardised securitisatio. This briefig summarises the mai elemets of the pla ad outlies the idicative timelie ad ext steps. There is o sigle measure that will deliver Capital Markets Uio. Istead, the Commissio has set out the steps which should be take over the ext three years i five priority areas i order to put i place the buildig blocks of Capital Markets Uio by 2019: Provide more fudig choices for Europe s busiesses ad SME s Esure a appropriate regulatory eviromet for log term ad sustaiable ivestmet ad fiacig of Europe s ifrastructure Icrease ivestmet ad choice for retail ad istitutioal ivestors ifrastructure ad Europea Log-Term Ivestmet Fuds (ELTIFs). The Commissio also lauched three cosultatios o veture capital fuds, o covered bods ad the cumulative impact of fiacial legislatio, all closig o 6 Jauary By the ed of the year, the Commissio will review the Prospectus Directive ad publish a Gree Paper o retail fiacial services. Loger term actios will follow over the ext 2-3 years. Key Facts Actios set out for the period Moitorig The capital markets are ot static, so the Commissio iteds to moitor developmets ad to cotiue efforts to idetify the mai iefficiecies ad barriers to deeper capital ad how best to overcome them. I additio to regular aual reports, the Commissio will prepare a comprehesive review i 2017, as a basis for decidig o ay additioal measures that may be required. Ehace the capacity of baks to led Dismatle barriers to cross-border ivestmet ad develop capital markets i all 28 Member States Most urget actios lauched alogside Actio Pla New Regulatio o Securitisatio ad revisio of the capital calibratio for baks New rules o Solvecy II treatmet of ifrastructure projects Next Steps I order to build mometum, some immediate steps ad short-term actios were aouced alogside the Actio Pla, icludig a legislative proposal o securitisatio ad revised prudetial requiremets for baks ad a adjustmet to the Solvecy II legislatio, to make it easier for isurers to ivest i Cosultatio o veture capital Cosultatio o covered bods Call for evidece the cumulative impact of fiacial legislatio Proposal to moderise Prospectus Directive expected Q Gree paper o retail fiacial services ad isurace expected Q Clifford Chace, October 2015

3 Capital Markets Uio What s the pla? 3 Capital Market Uio Actio Pla The Pipelie Review of the CRR for baks, makig chages o ifrastructure calibratios, if appropriate Ogoig Explore the possibility for all Member States to authorise credit uios outside the EU s capital requiremets rules for baks Ogoig Strategy o supervisory covergece to improve the fuctioig of the sigle market for capital Ogoig Proposal o simple, trasparet ad stadardised (STS) securitisatios ad revisio of the capital calibratios for baks Q Cosultatio o a EU-wide framework for covered bods ad similar structures for SME loas Q Call for evidece o the cumulative impact of the fiacial reform Q Adjust Solvecy II calibratios for isurers ivestmet i ifrastructure ad Europea Log Term Ivestmet Fuds Q Gree Paper o retail fiacial services ad isurace Q Proposal to moderise the Prospectus Directive Q Report o crowdfudig Q Stregthe feedback give by baks decliig SME credit applicatios Q Cosultatio o the mai barriers to the cross-border distributio of ivestmet fuds Q White Paper o ESAs fudig ad goverace Q Proposal for pa-europea veture capital fud-of-fuds ad multi-coutry fuds Q Revise EuVECA ad EuSEF legislatio Q Develop a strategy for providig techical assistace to Member States to support capital markets capacity Q Develop a coordiated approach to loa origiatio by fuds ad assess the case for a future EU framework Q Address the debt-equity bias, as part of the legislative proposal o Commo Cosolidated Corporate Tax Base Q Assessmet of the case for a policy framework to establish Europea persoal pesios Q Report o atioal barriers to the free movemet of capital Q Legislative iitiative o busiess isolvecy, addressig the most importat barriers to the free flow of capital Q Study o tax icetives for veture capital ad busiess agels 2017 Map out existig local or atioal support ad advisory capacities across the EU to promote best practices 2017 Ivestigate how to develop or support pa-europea iformatio systems 2017 Review regulatory barriers to SME admissio o public markets ad SME Growth Markets 2017 Review EU corporate bod markets, focusig o how market liquidity ca be improved 2017 Targeted actio o securities owership rules ad third-party effects of assigmet of claims 2017 Review progress i removig remaiig Giovaii barriers 2017 Best practice ad code of coduct for relief-at-source from withholdig taxes procedures 2017 Study o discrimiatory tax obstacles to cross-border ivestmet by pesio fuds ad life isurers 2017 Review of the EU macroprudetial framework 2017 EU retail ivestmet product markets assessmet 2018 Assessmet of the prudetial treatmet of private equity ad privately placed debt i Solvecy II 2018 Clifford Chace, October 2015

4 4 Capital Markets Uio What s the pla? Actio Pla o Capital Markets Uio Timelie Ogoig Explore the possibility for all Member States to authorise credit uios outside the EU s capital requiremets rules for baks Q Proposal o simple, trasparet ad stadardised (STS) securitisatios ad revisio of the capital calibratios for baks Q Report o crowdfudig Q White Paper o ESAs fudig ad goverace Q Adjust Solvecy II calibratios for isurers' ivestmet i ifrastructure ad Europea Log Term Ivestmet Fuds Q Proposal to moderise the Prospectus Directive Q Stregthe feedback give by baks decliig SME credit applicatios Q Develop a strategy for providig techical assistace to Member States to support capital markets capacity Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Ogoig Review of the CRR for baks, makig chages o ifrastructure calibratios, if appropriate Q Call for evidece o the cumulative impact of the fiacial reform Q Gree Paper o retail fiacial services ad isurace Q Cosultatio o the mai barriers to the cross-border distributio of ivestmet fuds Ogoig Strategy o supervisory covergece to improve the fuctioig of the sigle market for capital Q Cosultatio o a EU-wide framework for covered bods ad similar structures for SME loas Q Proposal for pa-europea veture capital fud-of-fuds ad multi- coutry fuds Q Revise EuVECA ad EuSEF legislatio Clifford Chace, October 2015

5 Capital Markets Uio What s the pla? 5 Q Address the debt-equity bias, as part of the legislative proposal o Commo Cosolidated Corporate Tax Base Q Report o atioal barriers to the free movemet of capital 2017 Study o tax icetives for veture capital ad busiess agels Ivestigate how to develop or support pa-europea iformatio systems Review EU corporate bod markets, focusig o how market liquidity ca be improved Review progress i removig remaiig Giovaii barriers Study o discrimiatory tax obstacles to cross-border ivestmet by pesio fuds ad life isurers 2018 EU retail ivestmet product markets assessmet Q4 Q4 Q Develop a coordiated approach to loa origiatio by fuds ad assess the case for a future EU framework Q Assessmet of the case for a policy framework to establish Europea persoal pesios Q Legislative iitiative o busiess isolvecy, addressig the most importat barriers to the free flow of capital 2017 Map out existig local or atioal support ad advisory capacities across the EU to promote best practices Review regulatory barriers to SME admissio o public markets ad SME Growth Markets Targeted actio o securities owership rules ad third-party effects of assigmet of claims Best practice ad code of coduct for relief-at-source from withholdig taxes procedures Review of the EU macroprudetial framework 2018 Assessmet of the prudetial treatmet of private equity ad privately placed debt i Solvecy II Clifford Chace, October 2015

6 6 Capital Markets Uio What s the pla? The Priority Areas The Actio Pla idetifies the broad objectives ad the actios that are eeded to make progress i five priority areas. Some are cocrete proposals, with a defiitive timelie. Other actios are less specific at this stage ad may require impact assessmet ad cosultatio to idetify the most appropriate way forward. Priority 1 Provide more fudig choices for busiesses ad SMEs I order to remove the barriers which limit smaller compaies raisig equity ad debt fiace, the Commissio plas to: Moderise the Prospectus Directive with the objective of makig it less costly for busiesses to raise fuds o public markets Lauch a package of measures to support veture capital ad equity fiacig Promote iovative forms of busiess fiacig such as crowd-fudig, private placemet ad loa-origiatig fuds Explore ways to build a pa-europea approach to better coect SMEs with a rage of fudig sources Support veture capital ad equity fiacig Proposal for a pa-europea veture capital fud-of-fuds ad multi-coutry fuds Q Revise EuVECA ad EuSEF legislatio Q Study o tax icetives for veture capital ad busiess agels 2017 The Commissio is to itroduce a package of measures i 2016 to support veture capital ad risk capital fiacig. This will iclude amedig the EuVECA ad EuSEF regulatios to make the passport more effective e.g. by allowig larger fud maagers to establish ad market EuVECAs ad EUSEFs, reducig the ivestmet threshold ad expeditig cross-border marketig ad ivestmet. There are plas also for a pa-europea veture capital fud-of-fuds ad multicoutry fuds supported by the EU budget, to mobilise private capital. The Commissio will also lauch a study o how tax icetives could be used to support equity fiacig, i particular for iovative compaies ad start-ups, ad will support cross-border etworkig ad capacity buildig for busiess agels, with a particular focus o Cetral ad Easter Europe, to develop cross-border platforms coectig busiess agels with SMEs ad facilitatig match-fudig. I additio, the Commissio will work with member states ad prudetial supervisors to support the developmet of idustry-led busiess growth fuds to support equity i SMEs. Overcome iformatio barriers to SME Ivestmet Stregthe feedback give by baks decliig SME credit applicatios Q Map out existig local or atioal support ad advisory capacities across the EU to promote best practices 2017 Ivestigate how to develop or support pa-europea iformatio systems 2017 There is a iformatio gap betwee SMEs ad ivestors which makes it difficult to obtai fudig. The Commissio will istigate a series of measures i 2016 ad 2017 to help SMEs idetify fudig, ad ivestors to idetify ivestmet opportuities. Promote iovative forms of corporate fiacig Report o crowdfudig Q Develop a co-ordiated approach to loa origiatio by fuds ad assess the case for a future EU framework Q Clifford Chace, October 2015

7 Capital Markets Uio What s the pla? 7 Curretly there is o EU framework which caters specifically for ledig-based crowd fudig. The Commissio set up a Crowdfudig Stakeholder Forum to support policy developmets i this area ad lauched a study to gather data o crowdfudig markets across the EU ad assess the impact of atioal legislatio. Based o this, ad also existig work from Stregthe access to public markets ESMA ad the EBA, the Commissio will publish a report i Q o the developmet of crowdfudig i the EU. Feedback to the Commissio s Gree Paper o Capital Markets Uios illustrated the barriers that exist for loa origiatig fuds. Ackowledgig this, ad the potetial future importace of such sources of o-bak credit, the Commissio iteds to assess the eed for a co-ordiated approach to loa origiatio by fuds, ad the case for a future EU framework, to avoid fuds operatig cross-border havig to comply with differet regulatory requiremets for their loa origiatio activities. The report is expected by the ed of Proposal to moderise the Prospectus Directive Q Review regulatory barriers to SME admissio o public ad SME Growth Markets 2017 Review EU corporate bod markets, focusig o how market liquidity ca be improved The Commissio is proposig to amed the Prospectus Directive, updatig the requiremets for whe a prospectus is eeded, streamliig the iformatio required ad the approval process. The itetio is to create a proportioate regime for SMEs seekig to access the capital markets. The Commissio will also explore how to support SMEs with the listig process through Europea advisory structures, such as, for example, the Europea Ivestmet Advisory Hub. Support equity fiacig Regulatory barriers for SMEs seekig to access to public markets will also come uder scrutiy. The Commissio will review the regulatory barriers to small firms for their admissio to tradig o public markets ad work closely with the ew SME Growth Markets uder MiFID II to esure that the regulatory eviromet is fit to purpose. The Commissio iteds to work closely with the ew SME Growth Markets itroduced by MiFID2 to esure that the requiremets avoid ay uecessary admiistrative burdes ad with the Iteratioal Accoutig Stadards Board (IASB) to explore the possibility of a volutary tailor-made accoutig solutio which could be used for compaies admitted to tradig o SME markets. The Commissio will review the fuctioig of the EU Corporate Bod Market by the ed of 2017 i respose to cocers raised about limited liquidity i the secodary markets. The review will also assess the potetial impact of MiFID2, market developmets ad volutary stadardisatio of offer documetatio. Address the debt-equity bias, as part of the legislative proposal o Commo Cosolidated Corporate Tax Base Q I 2016, the Commissio is plaig to address debt-equity bias, the preferetial tax treatmet of debt due to the deductibility of iterest paymets i compariso to other fiacial istrumets, i particular equity. This is part of the broader work beig udertake o the Commo Cosolidated Corporate Tax Base (CCCTB). The Commissio believes that addressig this tax bias would ecourage more equity ivestmet ad create a stroger equity base i compaies. Priority 2 Esure a appropriate regulatory eviromet for log-term ifrastructure ad sustaiable ivestmet Feedback to the Gree Paper demostrated that some regulatios eed to be revised. I relatio to ifrastructure ivestmets, the Commissio has proposed legislatio to revise the Solvecy II calibratios, to better reflect the risk of ifrastructure ivestmet. A review of the treatmet of bak exposures to ifrastructure uder the Capital Requiremet Regulatio (CRR) is ogoig. More broadly, the Commissio is to assess the cumulative impact of previous regulatory reforms to esure cosistecy ad coherece. Clifford Chace, October 2015

8 8 Capital Markets Uio What s the pla? Support ifrastructure ivestmet Adjust Solvecy II calibratios for isurers ivestmet i ifrastructure ad Europea Log Term Ivestmet Fuds Q Review of the CRR for baks, makig chages o ifrastructure calibratios, if appropriate Ogoig The Commissio has preseted revised calibratios i Solvecy II to esure that isurace compaies are subject to a regulatory treatmet which better reflects the risk of ifrastructure ad ELTIFs ivestmet. This move is to address cocers that the absece of a distict ad suitably calibrated calculatio of the regulatory capital that istitutioal ivestors should hold agaist ifrastructure ivestmets makes such ivestmets uattractive ad hampers cross-border ifrastructure ivestmet. With regard to Europea Log Term Ivestmet Fuds (ELTIFs), due to lauch i December 2015, the Commissio urges member states to grat them the same tax treatmet as similar atioal schemes i order to support their take up. The Commissio otes that baks, alogside istitutioal ivestors, remai importat i providig loas to ifrastructure projects. I order to gai a better uderstadig of the impact of ew regulatory capital requiremets o the availability of fiacig for ifrastructure ad other ivestmets that support logterm growth, the Commissio published a cosultatio paper i July 2015 o the potetial impact of the CRR ad the Capital Requiremets Directive (CRD IV) o bak ledig to the ecoomy. The cosultatio icludes a review of bak s capital requiremets for log-term ad ifrastructure fiace. The Commissio will complete the review of the CRR ad make chages o ifrastructure calibratios if ecessary. Esure cosistecy of the EU fiacial services rulebook Call for evidece o the cumulative impact of the fiacial reform Q The Commissio has lauched a call for evidece to evaluate the iteractio betwee rules ad the cumulative impact ad coherece of the fiacial reforms which have bee itroduced sice the fiacial crisis. The aim is to esure that EU legislatio strikes the right balace reducig risk ad eablig growth but does ot create barriers or uiteded cosequeces. Priority 3 Icrease retail ad istitutioal ivestmet The Commissio cosiders that retail savigs, held directly or through asset maagers, life assurace compaies ad pesio fuds are key to ulockig Europe s capital markets. Feedback to the Gree Paper revealed that more could be doe to stregthe passportig ad cross-border competitio i the asset maagemet idustry. O the retail side, actio will be take to boost choice ad competitio i cross-border retail fiacial services ad to improve trasparecy ad the quality of ivestmet advice. Actio is plaed to assist savig for retiremet, see as particularly importat because of Europe s ageig populatio, chaged demographics ad a protracted low iterest rate eviromet. Icreased choice ad competitio for retail ivestors Gree paper o retail fiacial services ad isurace Q With the objective of icreasig the level of retail ivestmet i the capital markets through competitio, choice ad crossborder supply, the Commissio will publish a Gree Paper o retail fiacial services ad isurace by the ed of Help retail ivestors get a better deal The Gree Paper will also assess the impact of digitalisatio o retail fiacial services. Icreased trasparecy is also a key objective; i additio to the Gree Paper, the Commissio will ask the Europea Supervisory Authorities (ESAs) to work o the trasparecy of log term retail ad pesio products ad a aalysis of the actual et performace ad fees. EU retail ivestmet product markets assessmet 2018 Clifford Chace, October 2015

9 Capital Markets Uio What s the pla? 9 The Commissio is plaig a comprehesive assessmet by the ed of 2018 of retail ivestmet products to esure that recet regulatory reforms (e.g. MiFID2, PRIIPS, UCITS ad Solvecy II) fulfil the objective of ehaced disclosure Support savig for retiremet ad to idetify ay areas of possible overlap ad icosistecy. The assessmet will also cover distributio chaels ad ivestmet advice, with a view to esurig that retail ivestors ca access suitable products o cost effective ad fair terms. Takig ito accout recet developmets, ad the pace of techological chage, the assessmet will examie how the policy framework should evolve to cater for olie based services ad fitech. Assessmet of the case for a policy framework to establish Europea persoal esios Q O pesios, at the ed of 2016 the Commissio will assess the eed for a policy framework to establish a Europea market for persoal pesios ad determie whether this framework should be uderpied by legislatio. This is to address the fact that there is o effective sigle market for third pillar (volutary, privately fuded) pesio plas i Europe. There is a patchwork of EU ad atioal rules that, accordig to the Commissio, creates a barrier to the developmet of a large, competitive market. Market fragmetatio also prevets pesio providers maximisig ecoomies of scale, risk diversificatio etc, which results i higher costs beig passed o to the ed cosumer. Expad opportuities for istitutioal ivestors ad fud maagers Assessmet of the prudetial treatmet of private equity ad privately placed debt i Solvecy II 2018 Cosultatio o the mai barriers to the cross-border distributio of ivestmet fuds Q Feedback to the Gree Paper showed that prudetial regulatio was adversely affectig the appetite of istitutioal ivestors through the calibratio of capital charges. The Commissio will itroduce more risk sesitive calibratios for ifrastructure ad ELTIFs ad for securitisatios. I additio, the Commissio will, i 2018, assess whether chages are warrated to the prudetial treatmet of private equity ad privately placed debt uder Solvecy II. If so, these will be icluded as part of the Solvecy II review. Stregtheig local fiacig etworks Feedback to the Gree Paper also highlighted several barriers which are icreasig costs for fud maagers establishig fuds ad sigificatly impedig their ability to market crossborder. To rectify this, a cosultatio will take place i 2016 o the mai barriers to cross-border distributio of ivestmet fuds. Legislative measures may be take to elimiate disproportioate marketig requiremets, fees ad other admiistrative arragemets imposed by host coutries ad the tax eviromet. Priority 4 Ehace the capacity of baks to led Baks will play a cetral role i Capital Markets Uio ad will cotiue to be the mai source of fudig for may busiesses. I order to ehace the ability of baks to led, the Commissio will take steps to boost the EU securitisatio markets, explore the possibility of local credit uios operatig outside the capital rules for baks ad establishig a pa-europea covered bod framework. Explore the possibility for all Member States to authorise credit uios outside the EU s capital requiremets rules for baks Ogoig The Commissio will cosider whether credit uios may operate outside the capital requiremets for baks, as the Build EU securitisatio markets applicatio of sophisticated ad complex bakig regulatio may be disproportioate. Some member states already operate o this basis. The Commissio will assess whether this approach should apply across the EU. Proposal o simple, trasparet ad stadardised (STS) securitisatios ad revisio of the capital calibratios for baks Q Clifford Chace, October 2015

10 10 Capital Markets Uio What s the pla? The Commissio has published, alogside the Actio Pla, a EU Framework for simple trasparet ad stadardised securitisatios, together with ew CRR calibratios for baks. Equivalet calibratios for isurers will follow through a amedmet to Solvecy II, as soo as the ew securitisatio framework has bee adopted. Support bak fiacig of the wider ecoomy establishig a covered bod framework Cosultatio o a EU-wide framework for covered bods ad similar structures for SME loas Q Also alogside the Actio Pla, the Commissio published a cosultatio o the developmet of a pa-europea framework for covered bods. The aim is to create a pa-europea market, without the fragmeted legal frameworks ad supervisory practices which restrict market access, depth ad liquidity. The Commissio believes that a more itegrated covered bod market could reduce the cost of fudig for baks issuig covered bods. Priority 5 Dismatle barriers to cross border ivestmet ad developig capital markets for all 28 member states The Commissio otes that, despite progress towards developig a sigle market for capital, there are still may barriers to cross-border ivestmet, ofte with their origis i local isolvecy, tax ad securities law. The Commissio iteds to tackle these i a umber of ways icludig by cosultig o the key isolvecy barriers to cross-border ivestmet with a view to proposig a legislative iitiative o busiess isolvecy ad tacklig ucertaity aroud securities owership. With respect to the regulatory eviromet, the Commissio iteds to work with the Europea Supervisory Authorities (ESAs) to develop a strategy to stregthe supervisory covergece ad to moitor the risks to fiacial stability that could potetially arise from marketbased fiacig. Remove atioal barriers to cross-border ivestmet Report o atioal barriers to the free movemet of capital Q The Commissio iteds to work alogside member states to resolve ujustified atioal barriers to the free flow of capital stemmig from, iter alia, isufficiet covergece i implemetig the sigle rulebook e.g. gold-platig regulatory requiremets or divergece i the applicatio of EU rules. The Commissio will publish a report by the ed of Legal certaity ad market ifrastructure for cross-border ivestig Targeted actio o securities owership rules ad third-party effects of assigmet of claims 2017 Review progress i removig remaiig Giovaii barriers 2017 The Commissio will take steps to alleviate the ucertaity surroudig securities owership, i particular i cross-border situatios. This is to address the cocers of may respodets to the Gree Paper who called for rules to clarify which atioal law applies to ay give cross-border securities trasactio. The Commissio plas to ehace ad broade existig rules i the field. O the basis of further cosultatio ad impact assessmet, the Commissio will also propose uiform rules to determie with legal certaity which atioal law apply to assigmet of claims. The Commissio will review progress i removig Giovaii barriers to crossborder clearig ad settlemet i 2017, takig ito cosideratio recet legislatio such as EMIR, CSDR ad MiFID2. This is to address cocers that, despite the progress that has bee made i recet years, barriers remai to efficiet cross-border clearig ad settlemet because of ucertaity as to who ows a security i the evet of a default ad whose rights take precedece i the evet of isolvecy. Ucertaity o such fudametal issues poses importat legal risks, for example to the eforceability of collateral, ad ca threate the resiliece of cross-border settlemet ad collateral flows. Clifford Chace, October 2015

11 Capital Markets Uio What s the pla? 11 Foster covergece of isolvecy proceedigs Legislative iitiative o busiess isolvecy, addressig the most importat barriers to the free flow of capital Q By the ed of 2016, the Commissio will propose a legislative iitiative o busiess isolvecy. This is i respose to feedback to the Gree Paper which showed that iefficiecy ad divergece of local isolvecy laws make it more difficult to assess credit risk, particularly across borders. The Commissio is seekig to address this Remove cross border tax barriers by fosterig covergece of isolvecy proceedigs, which, it is felt, would facilitate greater legal certaity for crossborder ivestors ad ecourage timely restructurig of viable compaies i fiacial distress. The iitiative will draw o experiece followig the Commissio s 2014 Recommedatio o a ew approach to busiess failure ad isolvecy, which ecourages member states to implemet early restructurig procedures ad give a secod chace to etrepreeurs, but which has oly bee partially implemeted i some member states. Best practice ad code of coduct for relief at source from withholdig tax procedures 2017 Study o discrimiatory tax obstacles to cross-border ivestmet by fuds ad life isurace compaies 2017 I 2017, the Commissio iteds to tackle the barriers to cross-border ivestmet arisig from atioal tax laws. The Commissio iteds to issue best practice ad develop a code of coduct, i cojuctio with member states, o withholdig tax relief priciples, to ecourage member states to adopt systems of relief at source. This is i respose to feedback to the Gree Paper, which illustrated that may cross-border ivestors suffered local withholdig taxes, which were difficult to reclaim, i additio to their domestic tax. The Commissio will also udertake a study o discrimiatory tax obstacles to cross-border ivestmet by fuds ad life isurace compaies. Ifrigemet procedures will be iitiated if ecessary. Promotig fiacial stability ad supervisory covergece Notig that the closer itegratio of capital markets ad the gradual removal of atioal barriers may potetially create risks to fiacial stability, the Commissio will support actios to icrease supervisory covergece, eablig capital markets regulators to act i a uified way, ad stregthe the tools available to regulators to maage systemic risks. Ehace capacity to preserve fiacial stability Review of the EU macroprudetial framework 2017 With regard to fiacial stability, the Commissio will work with the FSB at the iteratioal level ad the ESAs ad the ESRB to assess the risk to fiacial stability arisig from market-based fiace. I Europe, a umber of reforms have already bee put i place to reduce these risks, through EMIR, MiFID2 ad AIFMD, ad more are i the pipelie, for istace through the SFTR, the proposal o Moey Market Fuds ad the forthcomig legislative proposal o CCP recovery ad resolutio. At the iteratioal level, the FSB is prioritisig work to uderstad ad address vulerabilities stemmig from etities which are ot baks udertakig bak-like activities o capital markets. Further aalytical work will be udertake, for example to better uderstad the issues of market liquidity ad itercoectedess i the fiacial system. If additioal macroprudetial istrumets eed be developed, the Commissio will make the ecessary chages to the macro-prudetial framework i the cotext of the forthcomig ESRB review i Clifford Chace, October 2015

12 12 Capital Markets Uio What s the pla? Stregthe supervisory covergece ad capital market capacity buildig Strategy o supervisory covergece to improve the fuctioig of the sigle market for capital Ogoig White Paper o ESA s fudig ad goverace Q Develop a strategy for providig techical assistace to Member States to support capital markets capacity Q The Commissio will work with ESMA to develop a strategy to stregthe supervisory covergece i the Europea Uio ad to idetify areas where a more itegrated approach ca improve the fuctioig of the sigle market for capital. The Commissio will also work with ESMA to ehace the effectiveess of its thematic ad coutry peer review decisio-makig. The Commissio will publish a White Paper o the goverace ad the fiacig of the ESAs i The Commissio will, through the Structural Form Support Service, develop ad implemet a strategy to provide techical support to member states to stregthe the capacity of their atioal markets. This is expected by Q Clifford Chace, October 2015

13 Capital Markets Uio What s the pla? 13 Appedix 1 Actio Pla o Capital Markets Uio Fiacig for iovatio, start-ups ad o-listed compaies Support veture capital ad equity fiacig Overcome iformatio barriers to SME ivestmet Proposal for pa-europea veture capital fud-of-fuds ad multi- coutry fuds Q Revise EuVECA ad EuSEF legislatio Q Study o tax icetives for veture capital ad busiess agels 2017 Stregthe feedback give by baks decliig SME credit applicatios Q Map out existig local or atioal support ad advisory capacities across the EU 2017 to promote best practices Ivestigate how to develop or support pa-europea iformatio systems 2017 Promote iovative forms of Report o crowdfudig Q corporate fiacig Develop a coordiated approach to loa origiatio by fuds ad assess the case for a future EU framework Q Makig it easier for compaies to eter ad raise capital o public markets Stregthe access to public markets Support equity fiacig Proposal to moderise the Prospectus Directive Q Review regulatory barriers to SME admissio o public markets ad SME 2017 Growth Markets Review EU corporate bod markets, focusig o how market liquidity ca 2017 be improved Address the debt-equity bias, as part of the legislative proposal o Commo Q Cosolidated Corporate Tax Base Ivestig for log term, ifrastructure ad sustaiable ivestmet Support ifrastructure ivestmet Esure cosistecy of EU fiacial services rulebook Fosterig retail ad istitutioal ivestmet Adjust Solvecy II calibratios for isurers ivestmet i ifrastructure ad Q Europea Log Term Ivestmet Fuds Review of the CRR for baks, makig chages o ifrastructure calibratios, Ogoig if appropriate Call for evidece o the cumulative impact of the fiacial reform Q Icrease choice ad competitio for retail Help retail ivestors to get a better deal Support savig for retiremet Expad opportuities for istitutioal ivestors ad fud maagers Gree Paper o retail fiacial services ad isurace Q EU retail ivestmet product markets assessmet 2018 Assessmet of the case for a policy framework to establish Europea Q persoal pesios Assessmet of the prudetial treatmet of private equity ad privately placed debt Q i Solvecy II Cosultatio o the mai barriers to the cross-border distributio of ivestmet fuds 2018 Clifford Chace, October 2015

14 14 Capital Markets Uio What s the pla? Appedix 1 Actio Pla o Capital Markets Uio Leveragig bakig capacity to support the wider ecoomy Stregthe local fiacig etworks Explore the possibility for all Member States to authorise credit uios outside the EU s capital requiremets rules for baks Ogoig Build EU securitisatio markets Support bak fiacig of the wider ecoomy Facilitatig cross-border ivestig Proposal o simple, trasparet ad stadardised (STS) securitisatios ad revisio of the capital calibratios for baks Cosultatio o a EU-wide framework for covered bods ad similar structures for SME loas Q Q Remove atioal barriers to cross-border ivestmet Improve market ifrastructure for Cross-border ivestig Report o atioal barriers to the free movemet of capital Q Targeted actio o securities owership rules ad third-party effects of 2017 assigmet of claims Review progress i removig remaiig Giovaii barriers 2017 Foster covergece of isolvecy proceedigs Remove cross-border tax barriers Legislative iitiative o busiess isolvecy, addressig the most importat barriers to the free flow of capital Best practice ad code of coduct for relief-at-source from withholdig taxes procedures Study o discrimiatory tax obstacles to cross-border ivestmet by pesio fuds ad life isurers Q Stregthe supervisory covergece ad capital market capacity buildig Ehace capacity to preserve fiacial stability Strategy o supervisory covergece to improve the fuctioig of the sigle Ogoig market for capital White Paper o ESAs fudig ad goverace Q Develop a strategy for providig techical assistace to Member States to Q support capital markets capacity Review of the EU macroprudetial framework 2017 Source: Actio Pla o Buildig a Capital Markets Uio Europea Commissio September 2015 Clifford Chace, October 2015

15 Capital Markets Uio What s the pla? 15 Clifford Chace Cotacts Cédric Burford Parter, Paris T: E : cedric.burford@ cliffordchace.com Claire Burgess Parter, Lodo T: E : clare.burgess@ cliffordchace.com Michael Daki Parter, Lodo T: E : michael.daki@ cliffordchace.com Simo Gleeso Parter, Lodo T: E : simo.gleeso@ cliffordchace.com Eric Gree Seior Associate, Lodo T: E : eric.gree@ cliffordchace.com Kevi Igram Parter, Lodo T: E : kevi.igram@ cliffordchace.com Frédérick Lacroix Parter, Paris T: E : frederick.lacroix@ cliffordchace.com Joatha Lewis Parter, Paris T: E : joatha.lewis@ cliffordchace.com Philip Souta Head of UK Public Policy, Lodo T: E : phillip.souta@ cliffordchace.com Adrew Brya Seior PSL, Lodo T: E : adrew.brya@ cliffordchace.com Jacquelie Joes Seior PSL, Lodo T: E : jacquelie.joes@ cliffordchace.com Julia Machi Maagig Seior PSL, Lodo T: E : julia.machi@ cliffordchace.com Jessica Walker Seior PSL, Lodo T: E : jessica.walker@ cliffordchace.com Clifford Chace, October 2015

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