Stakeholders across the EU are very supportive of the new capital markets union being proposed by the European Commission, which they say will unlock capital for business and unlock growth.
As a result, the Commission is promising to move forward quickly with the necessary legislation including a package after the summer on securitisation with updated calibrations for Solvency II and Capital Requirements Regulation.
Jonathan Hill, the commissioner responsible for capital markets union which is a key aim of the Commission, told a conference held to mark the conclusion of the public consultation launched three months ago that the “real groundswell of support” showed they were on the right track.
The Commission will launch an action plan in September that will include a radical revision of the prospectus directive to create a lighter regime for smaller companies and ways to alleviate burdens for all companies including those already listed on a regulated market when they want to make a secondary issuance.
They aim to support insurers to invest in infrastructure, incorporating infrastructure as an asset class into Solvency II, and encourage further development of the pensions funds market, giving it more freedom to invest in assets with a long-term economic profile. This will also consider the feasibility of building a deeper private pensions market, for instance through optional pan-EU or a 29th regime.
The plan will include a review of venture capital regulation to help develop the market, allowing for a wider range of funds to participate and a wider range of possible investments.
The main aim, to make it easier to raise capital by issuing debt or equity on public markets, may need regulatory change to support the development of European private placement markets and the Commission will also consider whether greater co-ordination of withholding tax treatments are needed.
On the issue of tax, Mr Hill said they plan to address barriers on withholding tax procedures, for examples problems of double taxation and look at the bias in the tax system towards debt at the expense of equity.
Article Source: http://tinyurl.com/kbwqb42