As part of the next European political mandate, we call on the EU institutions to strengthen the European Capital Market Union (KMU). This is an important part of facilitating sustainability transitions and efforts to achieve strategic autonomy. In addition, improving the KMU is necessary to keep Europe's internal market competitive. On behalf of the Dutch asset management sector, we have therefore drawn up a number of priorities and proposals. With these we can work towards a strong and competitive European capital market union that is ready for the future.
Increasing Retail Participation.
There is broad EU consensus on the need to increase retail participation in European capital markets. Part of the solution lies in promoting efficient long-term financial products for European citizens. It is important to provide accessible and reliable information to retail investors and lower the barrier to investment services. Moreover, higher financial literacy will lead to greater participation by retail investors.
Sustainable Finance
There is a need to promote the growth of European (sustainable) investment products. The EU Sustainable Finance Action Plans launched in 2018 and 2020, and subsequent legislative packages and strategies, will contribute significantly to the growth of KMU. We believe that sustainability is the only way to achieve long-term prosperity. Therefore, we stress the importance of a stable and clear legislative and regulatory framework for sustainable finance.
Growth and Accessibility of European Capital Markets.
Efficient European financial market infrastructure and SME access to capital markets are important for a well-functioning KMU. Currently, investors enjoy suboptimal efficiency and protection once they have invested in capital markets. Ensuring efficiency and reducing the cost of market infrastructure should therefore be an important part of the KMU.
Convergence of EU Legislation and Better Regulation.
To strengthen the existing European laws and regulations of the KMU, possible national legal and regulatory barriers within the EU should be considered. The goal should be to simplify current EU regulations and make them more effective, while protecting investors and ensuring an efficient European financial market infrastructure. For this, more cooperation between politicians, regulators and the asset management industry is important.
