On 7 July, and following the recent publication of the final report on the High-Level Forum (HLF) on the Capital Markets Union, the European Commission (EC) published a roadmap for the Action Plan on the CMU.
The roadmap set out the general direction of travel for the Action Plan, with the EC outlining a number of key objectives; improving the ecosystem for raising capital, strengthening the efficiency of pan-EU capital markets architecture,, encouraging retail investor participation, and encouraging cross-border investment.
Today, the EC has formally published the Action Plan, detailing key priorities and legislative initiatives on capital markets to 2023.
Amongst those, and of notable relevance to the securities lending markets, are the following:-
- Central Securities and Depositories Regulation – Clarification of the review of CSDR, signalling a focus on a CSD passport and conditions for CSDs and credit institutions to provide bank-like ancillary activities.
- Shareholder Rights Directive – A legislative proposal by Q3 2023, including the possibility of introducing an EU-wide definition of ‘shareholder’, clarification on the rules on the corporate actions process, and the analysis of potential national regulatory barriers on the use of technology to facilitate communications between issuers and shareholders that will be taken forward by Q4 2021.
- Retail Investor Participation in Capital Markets – Initiatives to increase participation, trust and understanding of the capital markets.
ISLA welcomes the official publication of the Plan. This is a pivotal step in the development of the wider European economy, as it brings together previously disparate initiatives in a single cohesive strategy. We will be reviewing relevant elements of the Commission’s proposals in due course, through our various working groups and streams.
Full details of the Communication can be found here
Full details of the Annex can be found here
For details of all expected EU developments over the coming 2 to 3 years, as well as a table summarising the key priorities that have changed in light of COVID-19, please visit the ISLA website or click here