June 10, 2020 / 8:06 AM / 24 days ago

FACTBOX-EU seeks to boost its capital market

LONDON, June 10 (Reuters) - A high-level report set out 17 recommendations on Wednesday to boost efforts to build a European Union capital market, saying that the coronavirus pandemic and Brexit has made the task all the more urgent.

The recommendations are:

* Strengthen powers of the EU’s securities watchdog ESMA, and insurance watchdog EIOPA;

* Set up a single access point for company data in the EU, similar to the U.S. EDGAR system, to give investors information on companies;

* Review the EU’s long-term investment fund framework to include tax incentives to encourage “late stage” investment;

* Implement new bank capital rules agreed globally by the Basel Committee to help counter banks’ withdrawal from market making;

* Review EU Solvency II capital rules for insurers to make it easier to invest in equity:

* Review securitisation rules to make it easier for banks to fund smaller companies;

* Simplifying listing rules for smaller companies;

* Create a clear set of rules and legal certainty for using of crypto/digital assets;

* Changes to rules for settlement houses to encourage more cross-border securities trading;

* Standardisation of contractual terms for financial firms to use cloud-based services;

* Introduce pensions tracking systems for individuals and auto enrolment in occupational pensions schemes;

* Measures to educate the public about finance to encourage more retail investors;

* Amendments to improve disclosure rules on investment products and creation of a voluntary European quality mark for financial advisors;

* Regulatory framework for “open finance” or sharing of a customer’s data;

* Legislation to harmonise tax definitions and a standardised system for withholding tax relief at source;

* Targeted harmonisation of central elements in corporate insolvency law.

Reporting by Huw Jones

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