Global Trustee and Fiduciary Services News and Views Issue 50

Prime, Futures and Securities Services | XXXXXX 6 THE CAPITAL MARKETS UNION CHANNELLING CAPITAL TO ALL COMPANIES What is the action plan for the CMU? How will it help them expand and create jobs? What do its 30 INITIATIVES aim to accomplish ACROSS THE EU ? Including SMEs and LONG-TERM INFRASTRUCTURE projects? European products to investors and consumers so they can capitalise on the Single Market. More unified supervision of the capital markets. NEW Clearer and simpler rules to encourage businesses and entrepreneurs. € Diversifying funding sources , reducing the cost of raising capital, and helping SMEs raise finance. Removing cross- border barriers to investment and improving EU access. SO WHAT’S THE BIG IDEA? The idea is to turn round the performance of capital markets that are relatively fragmented and underdeveloped… 500% smaller Venture capital markets are smaller in the EU than in the US in terms of net amounts invested 42% drop in securitisation volumes issued: €216bn (2014) vs average €374bn (between 2001 and 2008) Less than €82M 75% of venture capital funds are smaller than this figure Since crisis Capital markets in the EU are still smaller than in other major economies since 2007 and 2008 €2TR by 2020 Total infrastructure investment needed (according to the EIB) 5X more Capital markets funding that mid-sized companies get in the US compared to the EU US The EC is monitoring the progress of its Capital Markets Union (CMU) Action Plan, which will offer more funding choices for businesses in different stages of their development, better returns for savers and investors, stronger savings and growth, and more. The European Commission has a plan to mobilise capital *Figures compiled from 2015 estimates. Making the EU globally attractive to investors, helping it to become more competitive. € € SUSTAINABILITY AND ESG