The European Commission has formally published the Capital Markets Union Action Plan, detailing key priorities and legislative initiatives on capital markets to 2023. Amongst those, and of notable relevance to the securities lending markets, the International Securities Lending Association (ISLA) highlighted the following:
- Central Securities and Depositories Regulation – Clarification on the review of CSDR, signalling a focus on a CSD passport and conditions for CSDs and credit institutions to provide bank-like ancillary activities.
- Shareholder Rights Directive – A legislative proposal by Q3 2023, including the possibility of introducing an EU-wide definition of ‘shareholder’, clarification on the rules on the corporate actions process, and the analysis of potential national regulatory barriers to the use of technology to facilitate communication between issuers and shareholders that will be taken forward by Q4 2021.
- Retail Investor Participation in Capital Markets – Initiatives to increase participation, trust, and understanding of the capital markets.
“This is a pivotal step in the development of the wider European economy, as it brings together previously disparate initiatives in a single cohesive strategy,” ISLA said in a statement, adding it will be reviewing relevant elements of the EC’s proposals in due course through its various working groups and streams.