midterm review of the capital markets union (CMU), one of
the EU’s most ambitious projects, implies a more
federal approach to EU legislation going forward. Market
participants believe the paper, which puts investment firms at
the heart of the CMU, is overall positive.
The stocktake sets out nine new priority areas. Central to
these is a review of the role played by European supervisory
authorities (ESAs), which may come as little surprise to the
market given the rhetoric from Brussels since the UK voted to
leave the EU.
Greater convergence ahead for EU member
states Members of European Parliament (MEPs) and staff
at the regulators themselves have made it clear over the past
year that European authorities, most notably the European
Securities and Markets Authority (Esma), will need greater
supervisory powers in a post-Brexit world. They’re
concerned national regulators are competing on regulatory and
supervisory standards as they...