NAPF comments on Capital Markets Union Green Paper

The National Association of Pension Funds (NAPF) has commented today (Wednesday) on the publication of the European Commission’s Green Paper consultation document on Building a Capital Markets Union (CMU).

Joanne Segars, Chief Executive, NAPF, said:

“The NAPF welcomes the Green Paper’s emphasis on strengthening European capital markets and the Commission’s commitment to creating an environment conducive to long-term investment. But it is important to remember that any reforms to the functioning of European capital markets should be seen through the lens of the providers of capital, in particular pension funds. This will help policy-makers to avoid unintended consequences where intermediaries benefit at the expense of funds and ultimately future pensioners.”

The overall objectives of the consultation paper are to:

• Enhance the flow of capital from investors to start-ups, small to medium employers (SMEs) and long-term projects;
• Remove barriers to cross-border flows of finance;
• Improve risk transfer and allocation of capital across Europe to those best placed to bear it;
• Diversify sources of funding, making Europe less reliant on bank lending.

Joanne Segars continued:

“The NAPF’s members have over €1tn of investments in the EU and global economy. They are looking to policy-makers to help deliver the supply of investment opportunities needed which are suitable for institutions that are investing to meet long-term liabilities.

“Very often the reasons for pension schemes choosing not to invest in other EU Member States relate more to the rigidities in some national economies as opposed to restrictions on cross-border investments. We hope the Green Paper debate will home in on the problems that need discussing.”

For more information read the on the European Commission’s website.

-ENDS-

Notes to editors:

The NAPF is the voice of workplace pensions in the UK. We speak for over 1,300 pension schemes that provide pensions for over 17 million people and have more than £900 billion of assets. We also have 400 members from businesses supporting the pensions sector.

We aim to help everyone get more out of their retirement savings. To do this we spread best practice among our members, challenge regulation where it adds more cost than benefit and promote policies that add value for savers.

Contacts:

Lucy Grubb, Head of Media and PR, NAPF, 020 7601 1726 or 07713 073023, [email protected]

Eleanor Bennett, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]