EC McGuinness – opening remarks with ECON Committee in the EU Parliament
Some key messages delivered by Commissioner McGuinness, on CMU, Central Clearing post-Brexit and Digital Finance
Capital Markets Union
Last week’s CMU package implements a number of the measures in the 2020 Action Plan. We have four main elements.
First, the European single access point (ESAP), essentially a one-stop-shop for financial and sustainability-related company and product information, making it easier for investors to find opportunities, and for companies to attract investors.
Second, we have put forward a proposal to make European long-term investment funds (ELTIFs) more appealing for investors, helping companies in need of long-term financing.
Third, we reviewed the Alternative Investment Fund Managers Directive. And here we want to clarify the rules on the outsourcing of certain functions by asset managers, and also harmonise the rules for funds that issue loans to companies.
And finally, in order to create a more competitive, transparent, integrated and fair trading landscape in the MIFIR review, we’re proposing the creation of a consolidated tape for trading data.
We are working on rules to make listing easier for EU companies – especially SMEs.
We will work on an SME IPO fund. We will also have a feasibility study on a scheme for banks to refer SMEs to other sources of funding if the bank cannot or does not want to lend to them.
There is also the upcoming retail investment strategy and here were talking about empowering, protecting and enhancing individuals’ participation in capital markets. We know there is a lot of money on deposit, we can harness this for the good of the citizen.
If we want a competitive and resilient CMU, then we also need vital financial infrastructures inside the European Union. After Brexit, the EU is overly reliant on CCPs that are now in a third country. Last month, I announced the Commission’s proposed way forward for central clearing.
Early next year we will put forward a series of measures to build the capacity of EU-based CCPs. We are looking at ways to improve liquidity in EU CCPs and strengthen EU supervision. This is vital for financial stability in the medium term.
But short-term financial stability means that we also need to avoid a cliff-edge for EU market participants, so I will propose an extension of the equivalence decision for UK CCPs early in 2022.
On digital finance, I warmly welcome last week’s political agreement on the Commission’s proposal for a pilot regime for DLT market infrastructures.
This will put Europe at the forefront of innovation. I thank the chair and particularly the rapporteur and the shadows for the speed and effectiveness of their work.
On digital operational resilience (DORA), I welcome your vote this morning, adopting the Committee’s report and your agreement to enter into negotiations with the Council.
This is a big step forward, and I thank the rapporteur and shadows for their work.
On the Markets in Crypto-Assets Regulation, the Council last week adopted a general approach.
It is now up to the Parliament to adopt its report so we can sit down and move the legislative process forwards.
Crypto markets are growing very rapidly and they pose particular risks to consumers, market integrity and indeed potentially for financial stability. MiCA proposal is designed to address these risks.
We have no time to lose: timeliness is of the essence. The markets are moving every day, and regulators around the world are taking measures. So it is really important that Europe has a framework in place as soon as possible to protect the integrity of our markets.