The representative body for the UK’s investment community said retail investors “must lie at the heart” of the CMU because their savings can be transformed into investment for both individuals and the economy.
Its comments come after the European Commission last week released a consultation document outlining its intentions to create an EU-wide CMU as it looks to boost global investments into the region by enabling cross border investment.
The WMA added that the CMU must recognise differences between financial sectors, markets, and member states practices, and should ensure that legislation is individually focussed rather than “one-size-fits-all”.
“Retail supervision in the CMU should happen as close as possible to the markets and private investors,” it added.
Liz Field, chief executive at the WMA, said the CMU presents an opportunity to boost economic growth in Europe by “tapping” into diverse sources of capital from anywhere within the EU.
She added that the WMA will continue to support retail investors as the union is developed.
The Commission said that over the next few months it will:
- review the prospectus directive to make it easier for firms, particularly smaller ones, to raise funding and reach investors cross border;
- work with the industry to put into place a pan-European private placement regime to encourage direct investment into smaller businesses, and;
- support the take up of new European long term investment funds to channel investment into infrastructure and other long term projects.
