Based on our experience, our response includes the following areas where further action by the Commission could facilitate the better functioning of European capital markets:

• Ensuring better flow of reliable and understandable information to market participants and potential investors.

• Using a common accounting framework would provide significant value for SMEs that intend to access pan-European funding and trading platforms. The current patchwork of accounting frameworks based on the EU Accounting Directive cannot serve as the basis for such a single framework.

• Proportionally applying IFRS to all companies listed on pan-European funding and trading platforms. This could be achieved through ongoing simplification of recognition and measurement requirements of IFRS, and reduced disclosures through the completion of the IASB’s Disclosure Initiative.

• Creating a more efficient taxation regime, and where the EU’s competencies allow, greater coordination and information sharing between Member States.

• Further harmonising corporate governance and company law and greater transparency regarding insolvency proceedings.

• Enhancing the role of the European Supervisory Authorities, to reflect the increased harmonisation and cross border nature of European capital markets.

Related files:

FEE comment letter on the Public Consultation on Building a Capital Markets Union

More Information:

CMU website including infographics

EC Consultation on the CMU

FEE comments on the Review of the Prospectus Directive

FEE comments on the EC Green Paper on Long-Term Financing of the European Economy (June 2013)