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MFA Submits Comments to European Commission on Capital Markets Union Mid-Term Review

On March 17, MFA submitted a comment letter to the European Commission in response to the Commission’s mid-term review of its Capital Markets Union project.  In our letter, we encouraged the Commission to address existing regulations that inhibit cross-border investment, including AIFMD rules for third country managers, third country equivalence determinations, and overlapping reporting requirements.  We also encouraged policy makers to continue work on developing a regulatory framework to incentivize loan origination by investment funds and the sale of non-performing loans from bank balance sheets.  We also urged the Commission and other regulators to avoid imposing bank-like regulation on capital markets activities, which we believe will create disincentives for investment in EU capital markets, contrary to the goals of the CMU.