EU plans CMU reforms

The Commission has proposed a package of reforms to further develop the CMU. The package comprises:

• EU-wide supervisory priorities set by the ESAs, which will also take a greater role in supervising the work of national regulators – in particular in checking how they allow market participants to outsource functions to third countries
• direct capital markets supervision by ESMA of certain sectors of the market, including approval of certain prospectuses, EuVeCas, EuSEFs and ELTIFs and a greater co-ordination role in market abuse investigations
• improved governance and funding for the ESAs and
• the ESAs prioritising Fintech in their initiatives and promoting sustainable finance

The EU Council and Parliament must now discuss the Commission’s proposals.