The Chair of the European Securities and Markets Authority (ESMA), Verena Ross, spoke on Monday 14 October during a debate in the European Parliament’s Committee on Economic and Monetary Affairs about the work that needs to be done to deepen the integration of capital markets in the European Union.
Responding to a question from Fernando Navarrete Rojas (EPP, Spanish), Ms Ross referred to three aspects: creating “simple, inexpensive, easy-to-understand” savings products for retail investors that meet their long-term liquidity needs; making the provision of capital to businesses easier by facilitating the development of capital markets and interconnecting them; combating the fragmentation of regulatory regimes by centralising the supervision of major financial players at European level.
Ľudovít Ódor (Renew Europe, Slovakian) asked whether the problem was the supply of products or Europeans’ lack of appetite for risk. Both need to be worked on at the same time and we need to develop “the financial literacy” of individuals, said Ms Ross, admitting that the Capital Markets Union is a long-term project. She cited the example of Sweden, where people have learned to invest their savings outside their current accounts, particularly in the equity markets, while remaining in a safe environment.
Securitisation. Questioned by Navarrete Rojas and Damian Boeselager (Greens/EFA, German) on the initiatives to be taken to revitalise the securitisation markets, Ms Ross stressed the importance of increasing the “transparency” of this financial technique, which helps to lighten banks’ balance sheets, as well as the due diligence inherent in securitisation.
The Chairs of the European Banking Authority (ESMA), José Manuel Campa, and the European Insurance and Occupational Pensions Authority (EIOPA), Petra Hielkema, have stressed the importance of developing the “expertise” of securitisation professionals.
Speaking in her capacity as Chair of the Joint Committee of European Financial Supervisory Authorities, Ms Ross spoke of the preparations underway for the implementation, from mid-January, of the prudential framework for preparing financial markets for cyber risks (‘DORA’ regulation - see EUROPE 12950/2). The three European authorities have developed specific tools for supervision and cooperation, and we are indicating to the industry the points on which we will focus our attention, she said. (Original version in French by Mathieu Bion)