The EU Commission has adopted a mid-term review of its 2015 Capital Markets Union action plan. The Commission notes that good progress has been made in implementing the action plan, with around two-thirds of the 33 actions delivered in 20 months.
The mid-term review follows up the initial action plan with nine new priority actions, including:
- strengthening the powers of the European Securities and Markets Authority (ESMA) to promote the effectiveness of consistent supervision across the EU and beyond;
- delivering a more proportionate regulatory environment for SME listing on public markets;
- reviewing the prudential treatment of investment firms;
- assessing the case for an EU licensing and passporting framework for fintech activities;
- presenting measures to support secondary markets for non-performing loans (NPLs) and exploring legislative initiatives to strengthen the ability of secured creditors to recover value from secured loans to corporates and entrepreneurs;
- ensuring follow-up to the recommendations of the High Level Expert Group on Sustainable Finance;
- facilitating the cross-border distribution and supervision of UCITS and alternative investment funds (AIFs);
- providing guidance on existing EU rules for the treatment of cross-border EU investments and an adequate framework for the amicable resolution of investment disputes; and
- proposing a comprehensive EU strategy to explore measures to support local and regional capital market development.
In addition, the Commission will advance its work on outstanding actions under the action plan. In particular, the Commission intends to put forward legislative proposals on:
- a Pan-European Personal Pension Product (PEPP) by the end of June 2017;
- conflict of laws rules for third party effects of transactions in securities and claims in the cross-border context in the fourth quarter of 2017; and
- an EU-framework for covered bonds in the first quarter of 2018.
The Commission is also taking forward its preparatory work on the following measures:
- amendments to the Delegated Regulation supplementing Solvency II in 2018 to review the prudential treatment of private equity and privately placed debt;
- a Recommendation on private placements in the fourth quarter of 2017;
- a Communication on a roadmap for removing barriers to post-trade market infrastructure (building on the recommendations of the EPTF - the European Post Trade Forum) in the fourth quarter of 2017;
- a Communication on corporate bond markets (building on the recommendations of the Expert Group on Corporate Bond Market Liquidity) in the fourth quarter of 2017; and
- a Code of Conduct to simplify withholding tax procedures, with a focus on refunds, by the end of 2017