Capital Markets Union (CMU)

CMU Overview

CMU seeks to create a single market for capital across Member States by removing barriers to cross-border investment and lowering the cost of funding in the European Union. There is no single measure which will deliver CMU. Instead the European Commission is looking to develop CMU through a range of measures including legislative, procedural and market-led initiatives.

The European Commission has published its CMU Action Plan which identifies the following five priorities for the establishment of CMU:

  • providing more funding choices for Europe’s businesses and SMEs
  • ensuring an appropriate regulatory environment for long term and sustainable investment and financing of Europe’s infrastructure
  • increasing investment and choices for retail and institutional investors
  • enhancing the capacity of banks to lend
  • bringing down cross-border barriers and developing capital markets for all 28 Member States.

The Action Plan sets out the building blocks for putting a well-functioning and integrated CMU, encompassing all Member States, into place by 2019. The broad scope of CMU will lead to changes across many areas of the financial markets and market participants will need to start planning now for the changes ahead as CMU develops.

Online Resources

Simmons & Simmons has experience advising on regulatory reform in the capital markets. Our sector focused team work closely with other specialists within the firm to offer our clients a cohesive multidisciplinary service across a number of jurisdictions where our clients operate.

Our online legal resource, elexica, contains in depth resources to assist you in understanding the establishment of CMU and planning for the impact it will have on your business:

  • Prospectus Directive

As part of the CMU initiative, the Prospectus Directive will be modernised. Our microsite is designed to provide you with access to materials relating to the Prospectus Directive 2003/71/EC (including ongoing amendments) and to the prospectus regime in the UK.

 Access the Prospectus Directive microsite

  • Securitisation

As part of the CMU initiative, the European Commission is seeking to revive high quality securitisation markets. Simmons & Simmons has a market leading securitisation and asset backed finance practice across our European, Middle Eastern and Asian network.

Our microsite provides practical information on key legal issues relevant to the securitisation and asset backed finance market.

Access the Securitisation and Asset Backed Finance microsite

  • Knowledge Centre

Our Capital Markets Union knowledge centre can help you access materials relating to the ongoing development of the Capital Markets Union.

 Access the Knowledge Centre