Capital Markets Union consultation paper - PwC comments

Published at 12:02 PM on 18 February 2015

In response to the European Commission's approval and publication of today's Capital Markets Union (CMU) consultation paper, Andrew Strange, financial services risk and regulation director at PwC, commented:

"Today's proposals represent a tangible shift in focus for Europe. With London as the leading capital market in Europe it is more important than ever that firms and the UK government work together to use London's success as a leading financial centre to build a stronger cross border capital union for Europe, with London at its core.

"Firms should look at today's CMU proposals and consider potential commercial opportunities. There are a number of quick wins for Lord Hill, such as the review of the prospectus directive, combined with longer-term ambitious plans to encourage high quality securitisation. If the CMU delivers on its ambitions to increase investment opportunities and drive growth across the EU, there will be many benefits to reap for firms of all sizes if they act quickly. Given the ambitious nature of the CMU, there are clearly challenges ahead for EU policy makers, but today's proposals are a bold step forward towards achieving its aims. If CMU objectives are achieved, the Commission's plans could mean very good news not only for Europe's financial and professional services industry, but for a vast range of businesses of all sizes across the Union.

"One of the key issues for the UK in the months to come will be the question of supervision. While there is an important role for the European Supervisory Authorities, firms will want to consider carefully which bodies should get more responsibility under CMU. Already we have seen the Bank of England suggest that this is not necessary, and we expect regulators in the UK to oppose ceding additional powers. Firms across the EU will not welcome any further uncertainty, particularly the Eurozone banks that are getting used to the reality of direct European Banking Authority supervision."

Ends

Media contact: 

Katherine Howbrook, PwC media relations, Tel: 020 7212 2711, Email: [email protected]


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