On Wednesday 9 March 2018, the European Commission adopted a package of measures and action plans as part of its Capital Markets Union (CMU) flagship initiative. It includes :
- a proposal for an EU framework on crowd and peer to peer finance,
- a European enabling framework for covered bonds,
- an initiative on reducing barriers to cross-border distribution of investment funds.
On top of these, it is interesting to note that the European Commission is, under this so called CMU flagship initiative, introducing what are most likely to be the flagship initiatives of tomorrow for DG FISMA, namely, a sustainable finance action plan and a FinTech action plan.
The Sustainable finance action plan
As a follow up to the work of the High-Level Expert Group on sustainable finance and its final report published on 31st Janury 2018, the European Commission is proposing an EU strategy on sustainable finance including, amongst others, measures and workstreams to:
- Develop an EU classification system ( taxonomy),
- Create EU labels for green financial products,
- Clarify the duty of asset managers and institutional investors to take sustainability into account in the investment process and enhance disclosure requirements,
- Require insurance and investment firms to advise clients on the basis of their preferences on sustainability,
- Incorporate sustainability in prudential requirements requirements for banks (the so-called green supporting factor) for sustainable investments,
- Enhance transparency in corporate reporting.
The FinTech Action Plan
The European Commission’s action plan includes plans to proceed in 23 steps in order to foster FinTech, these include:
- Creating an EU FinTec Laboratory,
- Developping a strategy on distributed ledger technology and blockchain,
- promoting the digitisation of information published by listed companies in Europe,
- Organising workshops on cybersecurity,
- Presenting a blueprint on best practices on regulatory sandboxes by the end of the year.
- Sustainable finance: Commission’s Action Plan for a greener and cleaner economy
- FinTech: Commission takes action for a more competitive and innovative financial market
Please note that the links to the other texts linked with the CMU package will only be made public on 12th March 2018.