AIMA and ACC welcome EC's CMU plan
The Alternative Investment Management Association (AIMA) and Alternative Credit Council (ACC) have welcomed the publication by the European Commission (EC) of the Capital Markets Union for people and businesses-new action plan (the CMU Action Plan).
AIMA and ACC say their members are ready to support the European Commission in it aims.
A statement from AIMA and ACC says: "Policymakers need to demonstrate leadership to deliver on this ambitious reform agenda and press ahead with implementation. Europe faces the biggest economic shock in living memory and the economic disruption from COVID-19 is still prevalent. The EU needs an urgent response and further integrating EU capital markets has now become a necessity.
"We support the step-by-step approach recommended by the CMU Action Plan. General regulatory stability is a necessary precondition for asset managers to be part of the solution. We therefore urge policymakers to focus on the Action Plan and avoid substantial overhaul of the UCITS and AIFMD frameworks.
"It is essential that the Action Plan allows both EU and non-EU investors to play their part in the CMU. Attracting sources of outside capital into the EU is necessary to support the economic recovery and maintain Europe’s future competitiveness. Openness to global investors should be at the heart of the CMU Action Plan.
"Developing market-based lending sources will be crucial to Europe’s economic recovery. Non-bank lenders currently provide EUR200bn of finance to more than 4,000 EU SMEs. The proposed reforms to the securitisation framework and ELTIF regulation can help unlock greater funding from the capital markets. This will allow non-bank lenders to play a vital role financing the real economy and support a more resilient financial system.
"The fragmentation of withholding tax claim processes and insolvency laws are key impediments to a single and truly integrated EU capital market. We commend the ambition shown by the European Commission and the initiatives proposed to address these challenges. The asset management industry is ready to support policymakers as they tackle these twin barriers.
"Centralisation of reporting requirements and data collection at the EU level is necessary to support better supervision. This should be prioritised ahead of other supervisory reforms which may affect investor confidence in the stability of the EU regulatory regime and undermine the CMU Action Plan.
Jiri Krol, Deputy CEO of AIMA, says: “The European Commission’s new Capital Markets Union Action Plan offers a roadmap to ensure capital markets play their part in supporting Europe’s economy. The true test will be the ability of policymakers to implement these initiatives and allow European capital markets to achieve their full potential. We believe there is a tremendous opportunity here for the EU to develop its capital markets and boost the EU’s competitiveness.”