Activities of Johan VAN OVERTVELDT related to 2020/2036(INI)
Shadow reports (1)
REPORT on further development of the Capital Markets Union (CMU): improving access to capital market finance, in particular by SMEs, and further enabling retail investor participation
Amendments (35)
Amendment 6 #
Motion for a resolution
Citation 7 a (new)
Citation 7 a (new)
- having regard to the MiFID II/MiFIR Review Report No.1 of the European Securities and Market Authority (ESMA) on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments,
Amendment 12 #
Motion for a resolution
Recital A
Recital A
A. whereas bank loan financing is in itself not sufficient to provide the amount of credit needed for the EU economy to recover from the crisis, but should instead be complemented with stronger market- based financing; whereas all actions taken to create a Capital Markets Union (CMU) should therefore have improving the range of financing options offered to companies and citizens, as well as a greater range of more attractive investment offers, as their objective;
Amendment 16 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas the EU's internal market is characterised by open competition, a regulatory framework, reliance on international standards and supervisory cooperation; whereas the CMU strategy should therefore be based on the same principles;
Amendment 19 #
Ab. whereas EU capital markets could serve the economy and the much needed economic recovery best when they are transparent, competitive, resilient, centrally cleared and supported by fair regulation,
Amendment 27 #
Motion for a resolution
Recital B
Recital B
B. whereas themost actions taken so far to achieve the CMU are moving in the right direction; whereas much work nevertheless remains to be done in terms of the precision, effectiveness and simplification of the measures adopted;
Amendment 32 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
Ba. whereas ambitious next steps are needed to make the EU capital market architecture truly pan-European, competitive and attractive to both EU and international end investors,
Amendment 34 #
Motion for a resolution
Recital B b (new)
Recital B b (new)
Bb. whereas a consensus has emerged from the experience with the Great Recession that the euro area’s institutional architecture is in need of reform to enhance its capacity to deal with large economic shocks; whereas in this respect economic literature typically finds that higher shock absorption in the United States results mainly from more effective private risk sharing via credit and capital markets;
Amendment 43 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. whereas a single price comparison tool consolidating trading data across the EU - referred to as the Consolidated Tape (CT) - would help brokers to locate liquidity at the best price available in European markets, increase investors’ capacity to evaluate their broker’s performance in executing orders, and be a major step towards democratising access to market data as all investors could easily see the best price to buy or sell a financial product; whereas practical experience with a CT is already available in the United States, where a CT has been mandated for shares (consolidating pre- and post-trade data) and bonds (consolidating post-trade data);
Amendment 75 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Calls for the removal of barriers, including the simplification of legislation and more proportional application of legislation and the removal of red tape, to diversify funding sources for SMEs, in order to promote SMEs’ ability to access equity markets, and to reduce the existing debt bias; points out that the current situation makes SMEs more fragile and vulnerable;
Amendment 84 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Calls for further integration and improvement of European capital markets to make them as attractive, competitive, and resilient as possible, especially also in the context of the withdrawal of the United Kingdom from the EU;
Amendment 87 #
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1b. Emphasises the fundamental importance of enhancing the euro area’s risk absorption capacity;
Amendment 89 #
Motion for a resolution
Paragraph 1 c (new)
Paragraph 1 c (new)
1c. Highlights that euro area countries can enhance their internal capacity to deal with macroeconomic shocks in particular by effectively reducing vulnerabilities in their economies, banking sectors, and public finances; considers further that economic resilience needs to be improved via structural reforms that support potential growth and increase flexibility;
Amendment 90 #
Motion for a resolution
Paragraph 1 d (new)
Paragraph 1 d (new)
1d. Stresses that efficient and integrated financial markets are a core prerequisite for efficient private risk sharing in the euro area; considers that a genuine CMU could significantly help to diversify and reduce risk;
Amendment 99 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. TNotes the declining Initial Public Offering (IPO) markets in the EU, reflecting their limited attractiveness for in particular smaller companies; highlights in this regard that SMEs face disproportionate administrative burdens and costs of compliance with listing requirements; takes the view that the efficiency of financial markets should be improved and that the listing of companies should be facilitated; encourages the creation and prioritisation of a large private pan- European fund, an Initial Public Offering (IPO)PO Fund, to support SMEs;
Amendment 102 #
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Agrees with the CMU High Level Forum on the importance of providing the right incentives to develop a strong “market making” capacity in the EU; considers in this regard that adequate prudential rules should strike a balance between loss absorption capacity, incentives to support a critical mass of investments, and the impact on the EU's global competitiveness;
Amendment 123 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Requests the realignment of the treatment of cash and synthetic securitisations, of the treatment of regulatory capital and liquidity with that of covered bonds and loans, as well as witha review of the disclosure and due diligence requirements for third country securitisation, covered bonds and simple, transparent and standardised (STS) securitisation; requests a clearer role for Competent Authorities in Significant Risk Transfer assessments, improved credit underwriting standards, and reduction of NPLs;
Amendment 129 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Calls for targeted measures within securities market legislation to expedite the recovery after the COVID-19 crisis; supportsuch as changes in the Prospectus Regulation, the Markets in Financial Instruments Directive (MIFID), the Securitisation Regulation and the Market Abuse Regulation to facilitate investments in the real economy, in particular in SMEs, and to allow newcomers and new products to enter the markets, preserving consumer protection and market integrity;
Amendment 139 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Notes that levels of bilateral trading off-venue remain high despite regulatory intentions; advocates a genuine shift towards competitive and on- exchange trading in European equity and derivatives markets; considers that encouraging this shift requires a certain openness to innovative exchange trading models that can meet investors' needs while bringing trading flow on-venue;
Amendment 148 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Asks the Member States to consider amending their national tax frameworks, in order to reduce tax obstacles to cross-border investments, including withholding tax procedures, and to increase financing by investors to long- term investment opportunities thereby improving returns on long-term savings for EU citizens;
Amendment 153 #
7. Highlights the importance of increasing legal certainty for cross-border investments by making national insolvency proceedings more efficient and effective, thus mitigating home bias, legal risks and costs;
Amendment 165 #
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Supports improving transparency for end investors through the establishment of an EU Consolidated Tape (CT);
Amendment 173 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Underlines the need to promote pension provision; welcomes the Pan- European Personal Pension (PEPP) product; reminds Member States that PEPPs need to be subject to the same tax treatment as national pension products to become an option for savers; highlights the importance of a level playing field for PEPP product providers including with regard to risk-mitigation techniques in the investment process; calls for a thorough evidence-based evaluation of the launch of the PEPP market before the next legislative review of the PEPP Regulation;
Amendment 179 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Highlights that demographic developments necessitate supplementing pay-as-you-go pensions with life-long intelligent saving and investing; Encourages the Member States to promote multi-pillar pension systems, including occupational pension schemes, as a way to improve market dynamics and the incentives to invest; believes that private pensions should be revitalised and made more attractive; encourages the participation of investors in long-term products with tax reduction or exemption policies;
Amendment 203 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Stresses the need for close cooperation between European and national supervisory authorities to overcome their differences; calls for supervisory convergence to promote a common European model, guided by the European Securities and Market Authority (ESMA), to reduce the existing obstacles to cross-border financial operations;
Amendment 207 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Highlights EU-wide competition, choice and open access among market infrastructures across the entire execution value chain as fundamental principles for the CMU; supports a diversity of trading mechanisms catering to different trading strategies, market conditions, and investment objectives, both in the EU and globally; considers that failure to uphold these principles in the upcoming discussions on the MiFID/R framework review would risk bringing back monopolistic national exchange structures, to the detriment of European economies and end investors;
Amendment 235 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. EStresses the need for a level playing field between financial services firms and technology firms; emphasises that access to financial markets should be possible for all enterprises under the ‘same business, same rules’ principle;
Amendment 242 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Recalls the existence of different shortcomings in the legislation on packaged retail investment and insurance products (PRIIPs) that should be addressed in the next reviewa comprehensive review covering Level 1 as well as Level 2 ; expects that Level 2 PRIIPs legislation on the Key Investor Document to respect lLevel 1, in particular in relation to the performance scenarios; regrets the delays in the adoption of Level 2 PRIIPs legislation that will overlap with the first review of PRIIPs, and which increases legal uncertainty and costs for stakeholders;
Amendment 250 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Urges the Commission to make clear the differentiation between professional and retail investors on all levels of MIFID, making it possible to tailor the treatment of clients according to their knowledge and experience on the markets; requests that the Commission consider the introduction of a category of semi-professional investors to better respond to the reality of participation on the financial markets;
Amendment 262 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Is of the opinion that the current reporting framework within MIFID II and the European Market Infrastructure Regulation (EMIR) is very costly and complex, hindering the effectiveness of the system; believes that a simplification thereof is necessarycalls in this regard for a simplification;
Amendment 280 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Underlines that financial education is needed to overcome lowaccelerate retail investor engagement with financial markets, based on lack ofincreased knowledge, mistrust and risk aversionwareness;
Amendment 289 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Urges the Member States, as well as, where appropriate, competent regional, local or other public authorities, to includeconsider including or expanding financial literacy programs in school curricula aimed at developing autonomy in financial matters; suggests the inclusion of this topicat such programs should at least include basic financial concepts such as compounding interest, returns and annuities and the distinction between bonds and shares; suggests the inclusion of financial literacy in the Programme for International Student Assessment (PISA) study;
Amendment 305 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Takes the view that the digitalisation of financial services can be a catalyst for the mobilisation of capital in the EU while reducing barriers and increasing supervisory efficiency; underlines that digitalisation should neither lead to regulatory arbitrage nor to lower customer protection, reduced safety or financial stability risks; emphasises that an EU framework with high standards of cybersecurity would be conducive to the CMU;
Amendment 322 #
Motion for a resolution
Paragraph 25
Paragraph 25
25. Points out that Europe competes for capital in a global market, and that, as a result, deeper, more integrated and effic, efficient and resilient European capital markets are critical to protecting Europe’s economic sovereignty, to encouraging the use of the euro in third countries, and to attracting foreign investors;
Amendment 330 #
Motion for a resolution
Paragraph 26 a (new)
Paragraph 26 a (new)
26a. Highlights that taxation remains a key driver of global capital flows; stresses therefore the importance of carefully assessing the impact of any Financial Transaction Tax (FTT) on the EU's ambitions to develop strong, globally attractive, resilient, deep and liquid capital markets;
Amendment 331 #
Motion for a resolution
Paragraph 26 b (new)
Paragraph 26 b (new)
26b. Recalls the need to ensure interoperability of the EU’s regulatory framework with internationally agreed principles from the Basel Committee on Banking Supervision and the Financial Stability Board;