Industry Proposes Reforms to Integrate EU Capital Markets

The Managed Funds Association (MFA) has submitted recommendations to the European Commission aimed at enhancing the integration of EU capital markets. The proposed reforms seek to improve regulatory alignment across member states and key global jurisdictions, fostering capital formation and bolstering the EU''s financial competitiveness.

"Integrated and efficient capital markets are the foundation necessary to deliver a successful Savings and Investments Union," said Jillien Flores, MFA Chief Advocacy Officer. Greater integration WOULD reduce costs, facilitate cross-border investment, and make the EU more attractive to global capital. The reforms could also enable alternative investment funds to operate more efficiently across borders, benefiting institutional investors like pension funds and foundations.

Current barriers—such as duplicative reporting, inconsistent national rules, and excessive regulatory burdens—have hindered full market integration. These obstacles limit the ability of Alternative Investment Fund Managers (AIFMs) to scale operations, restricting their capacity to provide capital, liquidity, and risk management solutions. Addressing these issues is critical for achieving the Commission''s objectives.