Debate: Markets in financial instruments – EU Recovery prospectus and targeted adjustments for financial intermediaries to help the recovery from the COVID- pandemic
Date: WEDNESDAY, 10 FEBRUARY 2021
Speaker: Mairead McGuinness
Language: EN

Mr Ferber and colleagues are debating – it’s excellent to hear it from this podium! But let me continue.  Our proposals to amend MiFID and PROSPECTUS will make it easier for capital markets to support European businesses so that they can recover from the crisis by raising essential equity capital. They will also facilitate the involvement of investors in the capital markets, while preserving our high levels of investor protection. As I’ve already said, this package will also be a positive signal to the financial markets in general and companies in particular. This package shows that the EU can adapt quickly to changing circumstances to support the real economy. The proposed measures are important and I hope they will be adopted and take effect as soon as possible.  But these amendments are not the end of the road. In particular, I’m ready, with my services, to engage with all of you on our Retail Investment Strategy, where we will take a holistic view of concerns on investor protection raised by the application of MiFID and other sectoral legislation. We will also closely cooperate with Parliament on a broader review of MiFIR to enhance market transparency.  I’d like to refer to some of the comments that were made. As I said, I enjoy a robust debate. This is a vital issue. We know that our capital markets are not fully developed in Europe, we know that banks cannot be the only source of funding for our SMEs and our businesses, and therefore we need to work together to strengthen our capital markets.  And yes, you are right to refer to crises of the past. I recall 2008, and many of us know what happened to families and businesses because of that, but in fact in today’s crisis, because we regulated the banks effectively, we now see that the banks and the capital markets can be part of the solution, continuing to lend to businesses. I therefore think that anyone who might suggest that this Commission, or me as Commissioner for Financial Stability, is on a mission to deregulate, please note that this is not the case. If anything, my experience of the past and my work in this Parliament previously make me more determined to have effective legislation and regulation which protects investors and provides us with a strong capital market. So can I say very clearly there will be no deregulation on my watch.  I know that I won’t persuade many of you to vote in favour of this, but I hope that you understand the sincerity of my contribution to this debate. You know we will come forward very soon and look again at MiFID, so there will be an opportunity for us to work together. As we look forward, I hope we can bring our sides together because we need a better coordinated approach on these issues through the recovery, because if we don’t have that, our companies will struggle. We will not be able to recreate employment in sectors where it is absolutely essential.  So, despite the diverse views and the deep divisions, I take from all of you a desire to work better together, to strengthen our resolve around capital markets, and to protect our SMEs and our workers, and I stand ready to do the same with you and cooperate fully.