The European Commission has set out the priorities of the Capital Market Union, including a focus on the long-term and rebuilding trust in a Green Paper. However, a campaign group has said the proposals are “underdeveloped” in these areas.
European commission vice-president Jyrki Katainen explained that the Capital Markets Union is the first structural initiative under the investment plan. It will contribute to ensuring that the investment plan is “more than a one-off push and has a durable positive impact on economic conditions in Europe”, he added.
The purpose of the Green Paper is to consult all interested parties on the Commission’s overall approach to putting in place the building blocks of the Capital Market Union by 2019. The main areas that the Green Paper seeks to address are improving access to financing for business, increasing and diversifying sources of finance, and making the markets work more effectively. Interested parties have until May 13 to submit a response.
The paper notes, “Retail investors will only be attracted to invest in capital markets if they trust them as wall as the financial intermediaries operating in them, and believe they can safely secure a better return on their savings. Restoring the trust of investors is a key responsibility and challenge for the financial sector.”
It also adds that creating a more “stable, transparent and predicable framework” for investors could contribute to building confidence and enhancing the attractiveness of the single market as “a place to invest for the long-term”.
Responsible investment charity ShareAction has argued that the paper needs to focus more on real people and whilst the statements around building trust and moving away from short-termism are welcomed, “proposals are underdeveloped in these areas”.
Chief executive of the organisation, Catherine Howarth said, “The Green Paper acknowledges the need to improve trust in the financial system but these proposals appear to be somewhat naïve when it comes to tackling the deficit of public support across Europe in the investment industry.
“The Kay Review in the UK showed that institutional investors face misaligned incentives and systemic pressures which prevent them from acting in savers’ long-term best interests. We look forward to responding in detail to the Green Paper to set out concrete ways the Commission could address these concerns across Europe.”
The Kay Review urged longer-term thinking in the investment world, the UK government responded in its feedback by outlining plans to act on some of the recommendations made. The review also recommended applying fiduciary duty standards to more people within the supply chain. Following the review, the Law Commission acknowledged that the current law on fiduciary duty was “confusing and inaccessible” but clarified that trustees can take environmental, social and governance (ESG) factors into account.
Photo: hisks by Freeimages
Like our Facebook Page
Harnessing the Sun: The Far-reaching Benefits of Solar Panels
7 Benefits of Purchasing Sustainable Housing
Our Top Five Sustainable Home Renovations For 2023
6 Ways Eco-Friendly Photographers Can Take Beautiful Natural Pictures
Emerging Research In Seagrass Restoration: What Does The Future Hold?
Sustainable Bites: How To Make Your Diet Eco-Friendly
Coffee Farms & Cloud Forests: Colombia’s New Eco Initiatives
Electric Cars: Are They Worth The Switch?
Maximizing the Efficiency of Deliveries: Strategies for Sustainable Businesses
The Rise of Sustainable Cloud Computing
The Future of Sustainability In The Logistics Industry
Eight Different Eco-Friendly Developments in the Food Industry
5 Key Areas to Look at When It Comes to Business Sustainability
Addressing Leadership Challenges in Green Entrepreneurship
Holding Eco-Friendly Coins is Greener and More Profitable
5 Reasons That Diamonds Can Be Excellent Green Investments
Eco-Friendly Airlines Use Weather Models to Make Safer Flights
Why Should We Invest in Eco-Friendly Homes?
The Rise of Sustainable Cloud Computing
Navigating Towards A Greener Future: Sustainable Practices In Maritime
- Features3 months ago
What is the Eco-Friendliest Option to Wash Your Dishes?
- Environment7 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment11 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?
- Business10 months ago
The Pulp & Paper Industry is Reaching its Sustainability Goals