Global Trustee and Fiduciary Services News and Views Issue 50

Global Trustee and Fiduciary Services News & Views | Issue 50 | 2018 9 ENSURINGANAPPROPRIATE REGULATORY ENVIRONMENT FOR LONG-TERM AND SUSTAINABLE INVESTMENT AND FINANCING FOR EUROPE’S INFRASTRUCTURE • Revision of Solvency II calibrations to better reflect the true risk of infrastructure investment, followed by a review of the treatment under the Capital Requirements Regulation for bank exposures to infrastructure • Assess the cumulative impact of previous regulatory reforms to ensure coherence and consistency, as part of the Commission’s initiative on Better Regulation and building on work started in the European Parliament in 2013 on coherence of EU financial services legislation ENHANCING CAPACITY OF BANKS TO LEND • Revitalisation of simple, transparent and standardised European Securitisations to free up capacity on banks’ balance sheets and provide access to investment opportunities for long-term investors • Explore possibility for all Member States to benefit from local credit unions to operate outside the scope of the EU’s capital requirements rules for banks • Assess whether and how to build a pan-European covered bond framework, building on national regimes that work well and explore the feasibility of similar funding tools for SME loans INCREASING INVESTMENT AND CHOICES FOR RETAIL AND INSTITUTIONAL INVESTORS • Look at ways to boost choice and competition in cross-border retail financial services and insurance through a Green Paper • Assess regulatory framework for retail investment (improving transparency and quality and availability of investment advice) against backdrop of increased on-line provision • Explore ways to increase choices for retirement savings and build on EU market for personal private pensions which pension providers could opt for when offering private pensions across the EU • Deliver an effective European fund passport that eliminates cross-border fees and barriers to increase competition and consumer choice BRINGING DOWN CROSS-BORDER BARRIERS AND DEVELOPING CAPITAL MARKETS FOR ALL MEMBER STATES • Consultation on key insolvency barriers and take forward a legislative initiative on business insolvency, addressing the most important barriers to the free flow of capital and building on national regimes that work well • Tackle uncertainty around securities ownership and pursue improvements in the arrangements for clearing and settlement of cross-border securities transactions • Promote development of capital markets in all Member States, by offering Member States tailored support to strengthen administrative capacity through the Commission’s Structural Reform Support Service • Work with the European Supervisory Authorities to develop and implement a strategy to strengthen supervisory convergence and identify areas where a more collective approach can improve the functioning of the single market for capital • Draw on the forthcoming European Systemic Risk Board (ESRB) review and international work, to ensure that national and European macro-prudential authorities have the tools to react appropriately to developments in capital markets European Commission launches public consultation on the Capital Markets Union Mid-Term Review (Memo/17/116): 20 January 2017 • 15 initiatives completed to date since the publication of the CMU Action Plan in September 2015 (includes amongst others: Prospectuses, Venture Capital and Securitisation initiatives) • Consultation seeks feedback on how the current program can be updated and completed • Relevant submissions from this consultation will help prepare the Mid-Term Review of the CMU Action Plan in June 2017 Upcoming priorities: • Personal Pensions • Promotion of the Fintech sector with the regulatory environment striking an appropriate balance • Sustainable Finance This Action Plan sets out the building blocks for putting into place by 2019 a well functioning, integrated Capital Markets Union encompassing all Member States.