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22 February 2013

IPE: Brussels to calibrate all Directives with long-term investing Green Paper


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Michel Barnier has reiterated his plans to "calibrate" all the new regulatory frameworks the European Commission is working on – such as CRD IV, Solvency II and IORP II – with the results of the Green Paper on long-term investing, which will be released within a few weeks.


The Commission stated that it might seek preferential treatment for certain types of long-term asset classes in Solvency II and the proposed new solvency rules for occupational pension funds.

Mr Barnier, the commissioner for internal markets, also highlighted the need to attract investment in European venture capital funds, which "play a very important role". He pointed out that, in 2011, venture capital investment covered the financing needs of only 2 per cent of small and medium-sized enterprises in Europe, compared with 14 per cent in the US. "Venture capital funds play a very important and specific role", he said. "They provide the innovating start-ups, which are not publically listed and need a five-seven year engagement from their investors, the necessary capital for their launch."

He also pointed to "mutations" in the banking sector that could lead to "additional funding difficulties". "That's why we are planning to calibrate all our regulatory frameworks to ensure the new rules are not damaging the financing of the real economy", he said. "I am particularly referring to our proposals for the CRD IV Directive, which focuses on capital requirements for banks."

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© IPE International Publishers Ltd.


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