Capital Markets Union: The High-Level Forum shares a new vision for Europe’s capital markets


Capital Markets Union: The High-Level Forum shares a new vision for Europe’s capital markets

11 June 2020

Regulatory News Alert

On 10 June 2020, the High-Level Forum (HLF) issued its final report on the Capital Markets Union (CMU), the policy initiative launched by the European Commission to achieve fully functioning and integrated capital markets across EU member states. This report provides a set of precise, mutually reinforcing recommendations to move the CMU project towards completion.

Deepening and integrating the capital markets of EU member states is now more urgent than ever: the CMU can counter the impact of the COVID-19 outbreak by speeding up recovery and improving financial stability, thereby benefitting European citizens and businesses. Moreover, the United Kingdom’s decision to leave the European Union (EU) and, as a result, impacting London’s position as the main European financial hub, makes the CMU indispensable in enhancing the role of capital markets in each and every member state.

By facilitating the achievement of set objectives, the CMU initiative can help the post-COVID-19 recovery and build more resilient economies. More specifically, the CMU aims to support the development of market financing to facilitate companies’ access to capital, thereby enabling sustainable economic growth and innovation. The CMU also aims to provide retail investors with cross-border access to simple, comparable, cost-efficient and transparent investment products. Leading digitalization efforts and facilitating the transition to a green economy are additional key priorities of the CMU project.

In line with the CMU’s key objectives, the HLF’s final report, which is addressed to different stakeholders (e.g., the European Commission, industries and member states), provides a set of interdependent recommendations organized into four main groups:

  1. The financing of businesses:
    a) Review of the Solvency II regulation to facilitate investments across a broader set of opportunities.
    b) Include a digital asset framework.
  2. The development of market infrastructures:
    Ease the listing and trading of shares (requiring a review of prospectus, CSD-R and market abuse regulations).
  3. The engagement of individual investors:
    a) Align rules on inducements across regulations.
    b) Create a new EU MIFID category for “super retail”.
  4. The removal of obstacles to cross-border investments:
    a) Propose to create a pan-EU withholding tax scheme.
    b) Reinforce the role of ESMA/EIOPA as regulatory trendsetters.

Deloitte, as a sponsor of the CMU supporting initiative Markets for Europe (M4E), is ready to help industry players and regulators achieve the objectives of the CMU project.

How can Deloitte help?

Deloitte’s advisory specialists and dedicated services can help you design and implement your optimal sustainable business strategy in light of the future evolution of the regulatory framework and market trends. Deloitte experts can support you through every step of the process, from the design of your strategy to the concrete implementation of your projects.

Deloitte’s Regulatory Watch Kaleidoscope service helps you stay ahead of the regulatory curve to better anticipate, manage and plan for upcoming regulations.

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Simon Ramos
Partner – IM Advisory & Consulting
Tel : +352 45145 2702

Lou Kiesch
Partner – Consulting, Financial Services
Tel: +352 45145 2456

Benoit Sauvage
Director – RegWatch, Risk Advisory
Tel : +352 45145 4220


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