The Capital Markets Union
The Capital Markets Union

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • The Capital Markets Union
  • What is the Capital Markets Union?
  • Objectives of the Capital Markets Union
  • The Capital Markets Union Action Plan
  • Mid-term review of the CMU Action Plan
  • The Prospectus Regulation—essentials
  • Securitisation Regulation and CRR Amendment Regulation
  • Covered bond framework
  • Crowdfunding

BREXIT: The UK is leaving the EU on Exit Day (as defined in the European Union (Withdrawal) Act 2018). This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—financial services, Brexit—impact on finance transactions—Key issues for securitisation transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

What is the Capital Markets Union?

On 30 September 2015, the European Commission published the Action Plan for Capital Markets Union (the Plan). It is intended to unify the capital markets across Europe's 28 Member States, promote investment and boost growth in the EU. The intention is that a successful Capital Markets Union (CMU) will broaden the range of financing options for growing companies.

There will be no single measure that will deliver a CMU, but the European Commission set out a number of steps that will have to be taken over a three-year period in order to achieve a CMU by 2019. These steps are discussed in more detail under The Capital Markets Union Action Plan below.

Objectives of the Capital Markets Union

The aim of the European Commission is to:

strengthen Europe's economy and stimulate investment to create jobs

President Jean-Claude Juncker's administration set out an Investment Plan for Europe in November 2014 which incorporates three pillars:

  1. to boost investment