IRSG has responded to the EU Commission’s Capital Markets Union (CMU) Midterm Review consultation. It drew on themes set out in its responses to the Commission’s Call for Evidence on the EU’s Framework for Financial Services and Insolvency Consultation.
The IRSG and TheCityUK have welcomed the CMU initiative as a means of furthering the international competitiveness of financial services and in helping to create jobs and deliver economic growth. It follows the IRSG’s existing agreement that the CMU was established to benefit savers, entrepreneurs and business across Europe.
There are various points of analysis and many technical recommendations included in the report, but none are new recommendations, all build from previous positions. Key recommendations include:
- Ensuring that regulatory frameworks are appropriately calibrated and consistent, including harmonising reporting requirements for data and definitions
- Deferring the mandatory buy-in regime under CSDR, for an impact assessment
- Amending CRR/CRD IV and Solvency II to treat infrastructure investment separately from loans to corporate borrowers
- Re-aligning capital ratio requirements to enable long-term finance and support the SME Growth Market classification
- Increasing digitisation and product innovation within the sector
- Reviewing the longevity reinsurance market to better account for risk margin
- Shortening the length of insolvency proceedings in totality
- Including a third country regime in the STS Securitisation framework
Read the full response below.