The reforms, which are yet to be approved by European leaders and the European Parliament include reviews of European regulations such as the European Long-Term Investment Funds Regulation, the Alternative Investment Fund Managers Directive, and the Markets in Financial Instruments Regulation.
In addition, a new European Single Access Point, will be created to help investors access public financial and sustainability-related information about EU companies in a single place. The ESAP will help inform investors, which companies are seeking financing.
Under the review of ELTIF Regulation, the commission wants to make redemption periods more flexible, remove minimum investment thresholds for retail investors to enter funds and help simplify selling investments across all European markets for managers.
Under the AIFMD review, the commission has clarified the rules on delegation so fund managers can utilize expertise from outside the EU.
Under the MiFIR review, the EU is also introducing an electronic pan-European system of real-time trading data, known as consolidated tape, for easier access by all investors to stocks, bonds and derivatives data across all trading venues in the EU.
"We are today taking action at various levels: making our capital markets more transparent, facilitating access to financial and sustainability-related data, and making investment products such as ELTIFs and other alternative investment funds more attractive to investors and fund managers," said Mairead McGuinness, commissioner responsible for financial services, financial stability and Capital Markets Union, in a news release Nov. 25. "This will better serve the needs of companies seeking finance to grow their business, which is crucial for the recovery and in meeting our green and digital objectives. But we are not stopping here; we are also announcing today more ambitious CMU initiatives to come in 2022 on access for companies to public markets, open finance, financial education and insolvency."
