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With the Green Paper on CMU, the Commission looks for input on the possible measures needed to create a true single market for capital.
The European accounting profession can be a constructive partner in developing a CMU, as accounting and auditing are directed towards achieving more efficient, transparent and trustworthy corporate reporting, thus allowing for better informed investment decisions. |
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)
