Joint Letter on Advancing EU capital markets: Prioritising key targets for the Savings and Investments Union

FESE, AFME, EFAMA and FIA EPTA submitted a joint letter to the Commissioner Albuquerque on the key, pressing priorities that we believe are essential for the SIU. The letter highlights the importance of addressing, among others, insufficient investor demand for listed equity, the persistent national barriers, the limited financial literacy, and the absence of effective investment incentives.

The signatories indicate that connectivity to equity liquidity pools is not an area necessitating remedy. Proposals such as mandating connection to/among trading venues, or a best execution regime focused exclusively on execution price, would not be effective in the European context.

Policy efforts should concentrate on stimulating investor demand through concrete measures aimed at attracting investors through a competition-oriented, innovation-friendly, and flexible regulatory framework that also considers the interests of issuers.

FESE and the co-signatories encourage a root-cause approach to properly identify and address relevant barriers, therefore unlocking the full potential of the SIU.