COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Capital Markets Union - Accelerating Reform
Date: 2016-09-14
Institutions: Directorate-General for Financial Stability, Financial Services and Capital Markets Union, European Commission
Subjects: EU Member State, aid to undertakings, capital goods, capital market, economic growth, economic integration, innovation, investment, investment aid, small and medium-sized enterprises

EN 

   EN 

   EUROPEAN COMMISSION  Brussels, 14.9.2016  COM(2016) 601 final   COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Capital Markets Union - Accelerating Reform  
 
 
Introduction 

The  Capital  Markets  Union  (CMU),  part  of  the  third  pillar  of  the  Commission’s 
Investment  Plan  for  Europe,  is  essential  to  delivering  the  Juncker  Commission's  
priority to boost jobs, including youth employment, and growth. It seeks to better connect 
savings to investment and to strengthen the European financial system by  enhancing private 
risk-sharing,  providing  alternative  sources  of  financing  and  increasing  options  for retail  and 
institutional  investors.  Removing  obstacles  to  the  free  flow  of  capital  across  borders  will 
strengthen Economic and Monetary Union by supporting economic convergence and helping 
to  cushion  economic  shocks  in  the  euro  area  and  beyond,  making  the  European  economy 
more resilient. This is even more important in the current economic environment. 

The  CMU  Action  Plan  of  September  20151  set  out  a  comprehensive  programme  of 
actions  to  put  in  place  the  building  blocks  for  the  CMU  by  2019  and  was  strongly 
supported by the European Parliament, Council and stakeholders. Alongside the Single 
Market Strategy and Digital Single Market Strategy, it sits at the heart of the European reform 
agenda for a deeper and fairer Single Market2. In the current political and economic context 
developing stronger capital markets in the EU is even more important. 

It is therefore essential to step up implementation and accelerate reform. The European 
Council of 28 June 2016 called for "swift and determined progress to ensure easier access to 
finance for businesses and to support investment in the real economy by moving forward with 
the Capital Markets Union agenda."3 One year after the launch of the CMU Action Plan, it is 
important to rapidly finalise the first wave of CMU initiatives so they can have an effect on 
the ground as soon as possible. It is also important to progress quickly towards the adoption 
of forthcoming legislative proposals. Finally, economic and technological developments, such 
as the rapid growth of FinTech or the need to build more sustainable finance, have the power 
to  transform  EU  capital  markets.  Taking  account  of  the  changing  political  context,  the 
Commission is taking forward the further priority areas needed to complete the CMU and will 
undertake a mid-term review in 2017. 

1) Finalising the first CMU measures 

Completion of the first measures is essential for the CMU to have a tangible impact on 
the  ground.  The  European  Council  of  28  June  2016  called  for  an  agreement  by  the  end  of 
2016 on the proposals for Simple, Transparent and Standardised (STS) securitisations4, to free 
up  capacity  on  banks'  balance  sheets  and  provide  investment  opportunities  for  long-term 
investors, and on the proposal for the simplification of prospectus rules making it easier for 
companies to seek investment from the capital markets.  

Rapid implementation of the securitisation package has the potential to quickly generate 
additional funding in the real economy. Establishing more risk sensitive capital charges for 
STS securitisations, will help to build confidence in the market and free up the balance sheets 

1   Action Plan on Building a Capital Markets Union, COM(2015)468 final, 30.9.2015  
2   Communication  of  1  June  2016  on  "Delivering  the  Single  Market  Agenda  for  Jobs,  Growth  and 

3  
4  

Investment", COM(2016)361 
European Council Conclusions, EUCO 26/16, 28 June 2016 
Proposal  for  a  for  a  Regulation  laying  down  common  rules  on  securitisation  and  creating  a  European 
framework  for  simple,  transparent  and  standardised  securitisation,  COM(2015)472  final,  30.9.2015; 
Proposal  for  a  Regulation  amending  Regulation  (EU)  No  575/2013  on  prudential  requirements  for  credit 
institutions and investment firms, COM(2015)473 final, 30.09.2015 

2 

 
 
                                                            
of banks to provide additional financing. If EU securitisations could be revived – safely – to 
pre-crisis average levels, this could provide additional funding to the economy of more than 
EUR  100  billion,  while  at  the  same  time  enhancing  financial  stability.  The  Council  has 
already  reached  a  General  Approach  and  progress  should  now  be  made  urgently  in  the 
European Parliament.  

The  modernisation  of  the  Prospectus  rules5  will  increase  access  to  capital  markets,  in 
particular for smaller companies. The Prospectus is the gateway to EU capital markets. It 
needs to be simple to produce, clear for investors and approved quickly. The new Prospectus 
rules should help generate more and less costly financing opportunities for companies. They 
need to be implemented as rapidly as possible. The Commission will do its utmost to support 
the co-legislators in finding an agreement before the end of the year. 

Measures  to  strengthen  venture  capital  markets  will  make  it  easier  for  medium-sized 
innovative companies to get financing. As part of the third pillar of the Investment Plan for 
Europe,  the  Commission  proposed  revised  European  Venture  Capital  Fund  and  European 
Social Entrepreneurship Fund Regulations. The proposals will boost investment into venture 
capital  and  social  projects  and  make  it  easier  for  investors  to  invest  in  small  and  medium-
sized innovative companies by opening up the regulation to fund managers of all sizes and by 
expanding  the  range  of  companies  that  can  be  invested  in.  To  make  the  cross  border 
marketing  of  funds  cheaper  and  easier,  the  proposals  explicitly  prohibit  fees  levied  by 
Member  States.  To  continue  building  confidence  in  the  EU  venture  capital  market,  the 
Commission calls on the European Parliament and the Council to finalise this proposal by the 
end  of  2016.  In  addition  the  Commission  will  promote  the  establishment  of  one  or  more 
Venture Capital Fund-of-Funds to support innovative investments in Europe and continue to 
work on other measures to support venture capital. 

CMU  is  a  project  for  all  Member  States.  Capital  markets  are  at  different  stages  of 
development  across  Member  States  and  smaller  companies  need  access  to  finance  through 
efficient and accessible local channels. To support the development of national and regional 
capital  markets  the  Commission  has  developed  capacity  to  provide  technical  assistance  to 
Member States upon request. To launch the first projects in early 2017, the co-legislators need 
to  rapidly  conclude  the  negotiations  on  the  Commission's  proposal  for  a  Regulation  on  the 
establishment of a Structural Reform Support Programme (SRSP) for the period 2017-2020.6 

2) Accelerating delivery of the next phase of CMU actions 

Inefficiencies  and  differences  in  national  insolvency  frameworks  generate  legal 
uncertainty,  obstacles  to  recovery  of  value  by  creditors,  and  barriers  to  the  efficient 
restructuring  of  viable  companies  in  the  EU,  including  for  cross-border  groups.  The 
Commission will present shortly a proposal on business restructuring and second chance, key 
elements  of  an  appropriate  insolvency  framework.  Allowing  honest  entrepreneurs  to  benefit 
from a second chance after overcoming bankruptcy is crucial for ensuring a dynamic business 
environment and promoting innovation. The Commission is also conducting a benchmarking 
review of loan enforcement (including insolvency) regimes to establish a detailed and reliable 
picture of the outcomes that banks experience  when faced with defaulting loans in terms  of 

5  

6  

Proposal  for  a  Regulation  on  the  prospectus  to  be  published  when  securities  are  offered  to  the  public  or 
admitted to trading, COM(2015)583 final, 30.11.2015 
Proposal for a Regulation on the establishment of the Structural Reform Support Programme for the period 
2017 to 2020, COM(2015)701 final, 26.11.2015 

3 

 
 
                                                            
delays,  costs  and  value-recovery.  The  review  will  assist  Member  States  seeking  to  increase 
the efficiency and transparency of their regimes. 

Taxation  regimes  can  present  barriers  to  the  development  of  cross  border  capital 
markets.  The  Commission  is  taking  action  to  encourage  Member  States  to  address 
withholding  tax  refund  procedures  and  encourage  best  tax  practices  in  promoting  venture 
capital  and  business  angel  investment  into  start-ups  and  innovative  companies.  Increasing 
equity financing, which is relatively underdeveloped in Europe, requires changes to taxation 
frameworks.  Addressing  the  preferential  tax  treatment  of  debt  over  equity  would  encourage 
more equity investments and create a stronger equity base in companies. It would also provide 
benefits in terms of financial stability, as companies with a stronger capital base would be less 
vulnerable to shocks. The Commission intends to issue a proposal on the debt-equity bias in 
November, in the context of its proposal on the CCTB7, and calls on the Council to adopt that 
measure as rapidly as possible.  

The  EFSI  2.0-proposal  will  significantly  reinforce  the  Investment  Plan  for  Europe. 
Europe  requires  large  amounts  of  additional  long-term  sustainable  investment  to 
support  jobs,  growth,  competitiveness  and  a  low-carbon  economy.  Public  support 
through the Reinforced Investment Plan for Europe will help with its focus on market 
failures  and  suboptimal  investment  situations,  but  further  measures  are  needed  to 
unlock  private  investment  for  the  longer  term.  To  further  facilitate  investments  in 
infrastructure  assets  by  institutional  investors,  the  Commission  will  adopt  an  amendment  to 
the  Solvency  II  Delegated  Act  to  reduce  the  capital  charges  attached  to  investments  by 
insurance companies in infrastructure corporates. In parallel, the Commission will as part of 
the  review of  the  Capital  Requirement  Regulation  and  Directive  before  the  end  of  the  year, 
propose to expand the favourable capital treatment for loans to SMEs and to reduce the capital 
requirements attached to investments in infrastructure.  

3) Next steps: developing further priorities 

The  Commission  will  consider  proposals  for  a  simple,  efficient  and  competitive  EU 
personal pension product.8 Personal pensions have an important role to play in linking long-
term savers with long-term investment opportunities. Personal pensions can help address the 
demographic  challenges  of  aging  populations,  evolving  working  patterns  among  the 
workforce, and help in securing adequate replacement rates in the future as a complement to 
state-based or occupational pensions. As a result of fewer barriers to the provision of pension 
services across borders, an EU personal pension product would increase competition between 
pension  providers,  enable  services  to  be  sold  into  bigger  markets  and  create  economies  of 
scale that should benefit savers. The Commission will base its approach on the results of the 
ongoing public consultation when deciding on the best way forward to support these markets9.  
Options under consideration include a possible legislative proposal which could be tabled in 
2017. 

7  

8  

9  

The proposal for the Common Corporate Tax Base will foster convergence in the definition of national tax 
bases. This will be accompanied by a separate proposal (CCCTB) to establish a common approach to the 
"consolidation" of corporate tax owed by firms operating across two or more Member States. 
Personal pension products are individual retirement related savings products which are complementary to, 
but separate from, state or occupational pension schemes. Efforts to develop these markets will complement 
pension provision through state or occupational pension schemes. 
Consultation on Capital Markets Union: Action on a potential EU personal pension framework, 27.7.2016  

4 

 
 
                                                            
The CMU aims to put European savings to better use, improving the efficiency through 
which  savers  and  borrowers  are  matched,  and  increasing  the  performance  of  the  EU 
economy. Retail investor engagement is a critical challenge for the development of a stronger 
capital  market  in  the  EU.  This  requires  greater  confidence  among  retail  investors,  and 
transparency to help investors to make the right investment decisions. The Commission will 
present an action plan on retail financial services to strengthen retail investor participation in 
capital markets and open up the European market for retail financial services to deliver better 
results for consumers and companies.  

Reforms  for  sustainable  finance  are  necessary  to  support  investment  in  clean 
technologies and their deployment, ensure that the financial system can finance growth 
in  a  sustainable  manner  over  the  long  term,  and  contribute  to  the  creation  of  a  low-
carbon,  climate  resilient  economy.  Such  reforms  are  essential  to  meet  our  climate  and 
environment  objectives  and  international  commitments  including  the  delivery  of  the  EU's 
commitments under the Paris Agreement on climate change10 and the objectives of the 2015 
Circular Economy package11. The Commission is working in the context of the G20 to further 
these objectives12. The Commission supports alignment of private investments with climate, 
resource-efficiency  and  other  environmental  objectives,  both  through  policy  measures  and 
public investment. In this regard, work is ongoing to increase the availability of green funds 
through the European Fund for Strategic Investment, by earmarking  at least 20% of the EU 
2014-2020 budget available for climate action, and by setting up a platform for financing the 
circular economy. The need to support EU green bond standards was highlighted in the CMU 
Action  Plan.  The  Commission  will  establish  an  expert  group  to  develop  a  comprehensive 
European  strategy  on  green  finance  in  the  coming  months.  More  broadly,  in  respect  of 
environmental, social and governance issues (ESG), the EU has adopted mandatory disclosure 
requirements  for  certain  large  companies  and  will  also  adopt  non-binding  guidelines  on  the 
methodology for reporting such information to investors and consumers. It is also assessing 
the  follow-up  to  the  recent  consultation  on  long-term  and  sustainable  investment  which 
emphasised the importance of ESG issues for the longer-term performance of companies and 
investors. 

Technology is driving rapid change in the financial sector and has the power to increase 
the  role  of  capital  markets,  and  bring  them  closer  to  companies  and  investors.  It  also 
benefits consumers by offering a wider choice of services which are more convenient to 
use  or  more  easily  accessible.  This  innovative  potential  should  be  harnessed.  FinTech 
firms succeed by providing new services that meet consumers' needs better in many financial 
fields  including  payments  and  lending.  Technology  is  a  driver  of  competition  and  helps  to 
create  a  more  diverse  financial  landscape.  At  the  same  time,  the  rapid  development  of 
FinTech  poses  new  challenges  in  managing  risks  and  ensuring  consumers  have  adequate 
information  and  safeguards.  In  a  number  of  Member  States,  regulatory  authorities  are 
developing  new  approaches  to  support  the  development  of  FinTech  firms,  including  hubs 
providing  regulatory  guidance  or  teams  focusing  on  policy  implications  of  FinTech.  The 

10   Along with EU commitments under the 2030 Agenda for Sustainable Development, the EU 2020 and 2030 

climate and energy targets 

11   Communication on Closing the loop - An EU action plan for the Circular Economy, COM(2015)614 final, 

2.12.2015 

12   The G20 Summit Communiqué from the Hangzhou summit (04/05 September) welcomes the G20 Climate 
Finance  Study  Group  report  on  "Promoting  Efficient  and  Transparent  Provision  and  Mobilization  of 
Climate Finance to Enhance Ambition of Mitigation and Adaptation Actions". 

5 

 
 
                                                            
 
Commission  will  continue  to  promote  the  development  of  the  FinTech  sector  and  work  to 
ensure the regulatory environment strikes an appropriate balance between building confidence 
in  companies  and  investors,  protecting  consumers  and  providing  the  FinTech  industry  the 
space  to  develop.  The  Commission  will  work  with  the  European  Supervisory  Authorities 
(ESAs), the European Central Bank, other standard setting bodies, and the Member States to 
develop  a  co-ordinated  policy  approach  that  supports  the  development  of  FinTech  in  an 
appropriate regulatory environment.   

Covered  bond  markets  are  among  the  largest  private  debt  markets  in  Europe  and  an 
important channel for longer term financing. They are instrumental for credit institutions 
to efficiently channel finance to the real estate market and for publicly guaranteed instruments 
including some SME loans. Based on the results of the recent public consultation and ongoing 
study,  the  Commission  will  set  out  as  part  of  the  CMU  mid-term  review  which  legislative 
changes may be needed to support the development of covered bond markets throughout the 
EU. 

The  EU  has  a  successful  track  record  in  promoting  the  cross-border  distribution  of 
investment  funds,  and  will  work  to  remove  remaining  barriers  to  a  fully  integrated 
market  –  reducing  costs  for  providers  and  delivering  benefits  to  retail  investors.  The 
Commission published a detailed public consultation13 seeking evidence of where eliminating 
unjustified  barriers  would  support  increased  cross-border  marketing  of  funds,  competition, 
choice, and reduce costs for investors. The Commission will take action to remove remaining 
barriers in the asset management sector, through legislative changes if necessary. 

The  Commission  will  accelerate  its  work  to  remove  barriers  in  the  post-trading 
environment.  Efficient  and  safe  post-trade  infrastructures  are  key  elements  of  well-
functioning capital markets. An expert group has been established to assess the evolution of 
the  EU  post-trade  landscape  following  recent  legislative  changes,  market  developments  and 
the  emergence  of  new  technologies.  The  group  will  also  assess  the  extent  to  which  the 
Giovannini barriers14 have been removed and identify any new or emerging barriers. In 2017, 
the Commission will launch a public consultation based on the results of the group's work to 
determine  the  most  appropriate  way  forward  in  this  area.  In  parallel,  the  Commission  will 
propose  a  future  legislative  initiative  to  determine  with  legal  certainty  which  national  law 
shall apply to security ownership and to third party effects of the assignment of claims. 

Effective  and  consistent  supervision  is  essential  to  ensure  investor  protection,  promote 
the  integration  of  capital  markets  and  safeguard  financial  stability.  The  role  of  the 
European  Supervisory  Authorities  (ESAs)  is  fundamental  in  building  a  deeper  and  more 
integrated  single  market.  The  European  Securities  and  Markets  Authority  (ESMA)  has 
already increased the focus of its work on supervisory convergence to ensure consistency in 
the application of capital markets rules and the oversight of market participants.15 However, 
further  work  will  be  needed  to  reinforce  the  European  dimension  of  supervision  in  areas 
where  it  can  bring  benefits.  For  example,  work  is  ongoing  in  the  area  of  governance  and 
financing  of  the  ESAs,  and  the  Commission  will  publish  a  white  paper  on  these  issues.  In 

13   Consultation  on  CMU  action  on  cross-border  distribution  of  funds  (UCITS,  AIF,  ELTIF,  EuVECA  and 

EuSEF) across the EU, 2.6.2016 

14   The First Report of the Giovannini Group (2001): "Cross-border clearing and settlement arrangements in 
the  European  Union"  identified  15  barriers  that  were  preventing  efficient  cross-border  clearing  and 
settlement of securities in the EU. 

15   ESMA Supervisory Convergence Work Programme 2016, ESMA/2016/203, 11.02.2016   

6 

 
 
                                                            
addition, a public consultation was launched in August 2016 as part of the review of the EU 
macro-prudential framework.16 Based on the results of the consultation, the Commission will 
adopt a legislative proposal in this area in 2017. 

The Five Presidents' Report highlighted the need to strengthen the supervisory framework in 
order  to  ensure  the  solidity  of  all  financial  actors,  which  should  lead  ultimately  to  a  single 
European  capital  markets  supervisor.  The  Commission  will  consider,  in  close  consultation 
with the European Parliament and the Council, the further steps in relation to the supervisory 
framework that are necessary to reap the full potential of CMU.  

The success of CMU can only be ensured if Member States are determined to work  to 
dismantle  the  unjustified  national  barriers  to  the  free  movement  of  capital.  National 
provisions often go beyond EU law and can in some instances be damaging for cross-border 
investment.  A  Member  States'  expert  group  has  made  progress  in  mapping  barriers  and 
exchanging good practices. Building on this work, the Commission will adopt a report by the 
end of 2016 that will list the barriers identified by the group, identify best practices, and set 
out  a roadmap  of proposed actions that  the Member States would  be  encouraged  to take by 
2019  at  the  latest.  An  important  part  of  this  work  focuses  on  best  practice  and  a  code  of 
conduct  for  more  efficient  withholding  taxes  procedures.  This  is  a  long-standing  barrier  to 
cross-border  investment.  Increasing  the  efficiency  of  these  procedures  at  the  national  level 
and agreeing on a Code of Conduct in 2017 will require a strong commitment from Member 
States. 

Better  regulation,  the  reduction  of  administrative  burden  for  market  participants  and 
the simplification of existing legislation will help the CMU deliver its potential. All CMU 
proposals  announced  are  prepared  in  line  with  the  better  regulation  principles,  consultation 
and impact assessment. As part of its better regulation agenda the Commission is pursuing an 
ambitious  program  to  identify  and  remove  unnecessary  regulatory  constraints.  The 
Commission's Call for Evidence has identified key areas within financial services legislation 
where improvements can be implemented. These refer to the need to address impediments to 
the  flow  of  finance  to  the  economy,  to  enhance  the  proportionality  in  the  regulatory 
framework to better balance financial stability and growth objectives, to reduce unnecessary 
regulatory burdens and address the remaining risks in the financial system. The Commission 
will present its follow-up to the Call for Evidence in the coming months. 

Conclusion 

The CMU Action Plan set out the key changes that are needed to strengthen EU capital 
markets. This plan is more important than ever and the implementation of actions in the 
plan should be accelerated. It is crucial that all relevant actors work together to achieve this. 
It  is  equally  important  to  ensure  that  the  CMU  priorities  evolve  alongside  the  evolving 
political,  economic  and  technological  landscape.  The  Commission  will  continue  to  monitor 
developments  and  identify  further  actions  that  are  necessary  to  develop  the  CMU.  The 
Commission calls on the European Parliament and the Member States to do everything 
within their power to deliver the CMU Action Plan as soon as possible and support jobs 
and growth in Europe. 

16   Consultation on the review of the EU macro-prudential policy framework, 1.8.2016  

7 

 
 
 
 
                                                            
 
ANNEX: STATE OF PLAY OF INITIATIVES IN THE CMU ACTION PLAN 

This overview provides an update on the status of actions contained in the CMU Action Plan 
and follows an earlier update published on 25 April 2016.17 

Financing for innovation, start-ups and non-listed companies 

Action  

Progress and next steps 

Pan-European venture capital fund-
of-funds  

Publish call for expression of interest in 2016. 

Support venture 
capital and 
equity financing 

Revise EuVECA and EuSEF 
legislation 

Tax incentives for venture capital and 
business angels 

Legislative proposal presented by Commission in 
July 2016, under negotiation in the European 
Parliament and Council. 

Study on national tax incentives underway. 

Workshop with Member State experts in October 
2016. 

Strengthen feedback given by banks 
declining SME credit applications 

Close discussions with European banking industry 
and representatives of small businesses. 

Overcome 
information 
barriers to SME 
investment 

Map existing local or national support 
and advisory capacities across the EU 
to promote best practices. 

Workshop on Advisory Support for SME Access to 
Finance: September 2016.  

Investigate how to develop or support 
pan-European information systems 

This policy action will build on results of mapping of 
national support and advisory systems. 

Promote 
innovative 
forms of 
corporate 
financing 

Report on crowdfunding 

Report published in May 2016. 

Develop a coordinated approach to 
loan origination by funds and assess 
the case for a future EU framework 

ESMA opinion received in April 2016. 

Making it easier for companies to enter and raise capital on public markets 

Action 

Progress and next steps 

Proposal to modernise the Prospectus 
Directive  

Strengthen 
access to public 
markets 

Review regulatory barriers to SME 
admission on public markets and 
SME Growth Markets 

European Parliament plenary debate in September 
2016. 

Council General Approach reached in June 2016 

Workshops with stakeholders in October and 
December 2016.  

Review EU corporate bond markets, 
focusing on market liquidity 

Study launched in July 2016. 

Expert group to be launched in autumn 2016. 

Support equity 
financing 

Address debt-equity bias in national 
corporate tax systems  

Proposals on CCTB to be presented by COM by end 
2016. 

17   Commission Staff Working Document "Capital Markets Union: First Status Report", SWD(2016)147 final, 

25.4.2016, available at http://ec.europa.eu/finance/capital-markets-union/docs/cmu-first-status-
report_en.pdf 

8 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                            
 
Investing for long term, infrastructure and sustainable investment 

Action 

Progress and next steps 

Support 
infrastructure 
investment 

Ensure 
consistency of 
EU financial 
services rulebook 

Action 

Increase choice 
and competition 
for retail 
consumers 

Help retail 
investors to get a 
better deal 

Adjust Solvency II calibrations for 
insurers' investment in infrastructure 
including infrastructure corporates 
and European Long Term 
Investment Funds 
calibrations, if appropriate (ongoing) 
Review of the CRR, changes on 
infrastructure calibrations 

Amendments to Solvency II legislation regarding 
infrastructure projects and ELTIFs took effect in 
April 2016. 

Assessment of infrastructure corporates ongoing.   

Under consideration in context of forthcoming 
revision of CRR/CRD. 

Call for evidence on the cumulative 
impact of the financial reform  

Public hearing held in May 2016; feedback statement 
published in May.  

Follow-up to be announced in Q3 2016. 

Fostering retail and institutional investment 

Progress and next steps 

Green Paper on retail financial 
services and insurance 

Action Plan to follow. 

EU retail investment product markets 
assessment 

Study on the "Distribution systems of retail 
investment products across the European Union" to 
be launched by end of 2016 

Support saving 
for retirement 

Assessment of the case for a policy 
framework to establish European 
personal pensions 

Expand 
opportunities for 
institutional 
investors and 
fund managers 

Assessment of the prudential 
treatment of private equity and 
privately placed debt in Solvency II 

Consultation on the main barriers to 
the cross-border distribution of 
investment funds. 

Public consultation launched in July 2016; closes on 
31 October 2016. 

Call for tender for a study launched in June 2016 

EIOPA advice delivered in July 2016 

Preparatory work ongoing. 

Public consultation launched on 2 June 2016; closes 
on 2 October. 

Leveraging banking capacity to support the wider economy 

Action 

Progress and next steps 

Strengthen local 
financing 
networks  

Expand possibility for Member States 
to authorise credit unions outside the 
CRD/CRR. 

Explore the possibility to amend CRR as part of the 
CRD/CRR review 

Build EU 
securitisation 
markets 

Proposal on simple, transparent and 
standardised (STS) securitisations 
and revision of the capital 
calibrations for banks.  

Support bank 
financing of the 
wider economy 

Consultation on an EU-wide 
framework for covered bonds and 
similar structures for SME loans. 

General Approach in Council; under scrutiny by the 
European Parliament. Vote in ECON Committee 
expected in November 2016. 

Consultation concluded, study launched. 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Action 

Remove national 
barriers to cross-
border 
investment 

Improve market 
infrastructure 
for cross-border 
investing 

Foster 
convergence of 
insolvency 
proceedings 

Remove cross-
border tax 
barriers 

Strengthen 
supervisory 
convergence and 
capital market 
capacity building 

Facilitating cross-border investing 

Report on national barriers to the 
free movement of capital 

Targeted action on securities 
ownership rules and third-party 
effects of assignment of claims 

Progress and next steps 

Meetings of  Expert group of Member States' 
representatives ongoing 

Communication to be adopted by end 2016. 

Call for tender for a study launched in August 2016. 

Review progress in removing 
remaining Giovannini barriers 

Expert group to conclude work in early 2017, 
followed by Commission consultation. 

Insolvency law  

Best practice and code of conduct for 
relief-at-source from withholding 
taxes procedures  

Study on discriminatory tax obstacles 
to cross-border investment by pension 
funds and life insurers.  

Strategy on supervisory convergence 
to improve the functioning of the 
single market for capital 

Legislative proposal on business restructuring and 
second chance to be presented in autumn 2016; 

Benchmarking of loan enforcement (including 
insolvency) regimes. 

Best practices exchanged in expert group on barriers 
to the free movement of capital  

Results of T2S Harmonisation Steering Group of the 
(ECB)  

Agree next steps in Communication on capital 
barriers. 

Terms of reference under preparation. 

Implementation of ESMA's first annual Supervisory 
Convergence Work Programme ongoing. 

Ongoing discussions on the preparation of the 2017 
Supervisory Convergence Work Programme.  

White Paper on ESAs' funding and 
governance. 

Preparatory work ongoing in view of adoption of a 
White Paper. 

Technical assistance to Member 
States to support capital markets' 
capacity. 

The European Parliament and the Council to adopt 
the SRSP Regulation. 

Work with Member States to identify priority areas 
for technical assistance ongoing.   

Financial 
stability 

Review of the EU macro-prudential 
framework. 

Public consultation launched on 1 August 2016; 
results to be used as basis for legislative proposal. 

10