Views on improving the integrity of global capital markets
17 March 2016

Capital Markets Union Update: Creating Regulatory Framework for EU Financial Sector

Posted In: Market Structure
EU Parliament Conference Hall in Brussels

In February 2015 the European Commission published a Green Paper (a public consultation) on building a Capital Markets Union (CMU) in Europe. The main goals of the CMU would be to enhance growth and jobs in the European Union (EU) and to increase the role that capital markets play in the financing of the economy, for example, by increasing the funding of small and medium-sized enterprises (SMEs). The CMU would not replace the role of banks, but rather aim to increase complementary sources of funding. The European Commission’s aim is to have the main building blocks of the CMU in place by the end of the current Commission’s term in 2019.

CFA Institute has actively sought feedback from our members, which helped guide our response to the Green Paper, our white paper on the CMU initiative, and related blog post on what investors see as key hurdles to the CMU.

With a number of separate initiatives under the CMU umbrella, we can expect some changes to the current European capital market framework in the coming months and years. Whether the changes will be cosmetic or profoundly far-reaching, will depend on the ambitiousness of the policy-makers in the European Commission, Parliament, and the Council (representing EU Member States).

In the videos below, CFA Institute capital markets policy analyst Maiju Hamunen discusses key CMU legislative proposals and how CFA Institute responded to the Commission’s Call for Evidence on the EU Regulatory Framework for Financial Services.

Maiju Hamunen details proposals on the Prospectus Directive and creating a legal framework for simple, transparent, and standardised securitization.

Maiju Hamunen discusses CFA Institute response to “Call for Evidence,” including concerns about application of the market abuse legislation, transparency directive, accounting directive, and passporting services within the Alternative Investment Fund Managers Directive.

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Image Credit: Memitina

About the Author(s)
Maiju Hamunen

Maiju Hamunen was an analyst for the Europe, Middle East, and Africa (EMEA) region in the Capital Markets Policy Group at CFA Institute. She was responsible for developing research projects, policy papers, articles, and regulatory consultations that advanced the policy positions of CFA Institute.

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