Global Trustee and Fiduciary Services News and Views Issue 50

Prime, Futures and Securities Services | Sustainability and ESG 10 debt rarely go beyond their national borders when they invest, given the differing rules and market practices in play for products such as securitised instruments or private placements. The Commission launched its annual report on European Financial Stability and Integration at the beginning of May 2018. In a speech covering the report, Dombrovskis says that in promoting a stable, efficient and truly integrated financial system in the EU, the Commission has two main priorities: completing the Banking Union and putting in place a Capital Markets Union in 2019. 10 To date the Commission continues to monitor progress in the implementation of the CMU Action Plan to ensure that this important reform project remains on track. Of the CMU Actions overall, the following will be of most specific interest for asset managers. Capital Markets Union (CMU) COM(2015) 468 final Status In various stages of development. Phased introduction until late 2019. Detailed delegated legislation up to 2022. Affecting All financial institutions. Covering These specific areas of interest to asset managers: • Green paper on retail financial services and insurance. • Consultation on main barriers to cross border distribution of investment funds. • Revision of EuVECA and EuSEF legislation. • Fintech Action Plan. • Sustainability Proposals. • Framework for a Pan-European Personal Pension Product (PEPP). • EU Commission invited ESA’s to issue recurrent reports on the cost and past performance of the main categories of retail investment, insurance and pension products. • Proposal for more proportionate and risk-sensitive rules for investment firms. • Review of ESA’s and proposed reforms for a more pan-European approach to supervision. • Call for Evidence identifying measures to simplify rules and reduce the regulatory burden on companies. Feedback is being incorporated into existing legislation on an ongoing basis. Further placemats on these topics are available to our clients on request. Where next for the CMU Action Plan and its ambitious completion date of 2019? In March 2018, the Commission published a communication on completing the CMU by 2019, noting that it was time to accelerate its completion. 8 This was followed up in May 2018, in a speech by Valdis Dombrovskis, Commission Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union. 9 In his speech, he highlights that the CMU is particularly necessary because the European market remains heavily dependent on bank financing. Shareholders and purchasers of corporate