BRUSSELS, 20 May 2015 – ESBG sent on 13 May the European Commission a response to the Capital Market Union package comprised of a Green Paper for developing a Capital Markets Union, a Review of the Prospectus Directive and a proposal for a framework for simple, transparent and standardised securitisation.
Concerning the response on the Green Paper on the Capital Markets Union, the ESBG called for a policy of complementarity rather than a policy of substitution regarding the financing of the economy, in particular SMEs. ESBG provided in its response its solutions and propositions for building a CMU in harmony with the European economy, its specifities and structures.
Further, a response to the Commission consultation on an EU framework for simple, transparent and standardised securitisation, has been submitted. ESBG’s aim was to provide technical input in order to develop high-quality securitisation. ESBG welcomes the development of criteria for identifying a new category of securitisation as it is essential to support the economy by granting new funding sources in particular to SMEs. Certain synthetic securitisations should be included into the high-quality securitisations framework, otherwise banks would suffer an unnecessary burden when placing parts of their credit risk exposure to professional investors.
A third response on the EC consultation on the Review of the Prospectus Directive has been submitted. ESBG advocates for bringing the Directive in line with pre-existing legislation requirements. PRIIPs (in particular the Key Information Document), Transparency Directive, and MAD/MAR. This will reduce the time and cost burdens on, in particular, smaller institutions.