NAPF comments on European Commission’s Green Paper

NAPF comments on European Commission’s 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).

Pension_Schemes_Bill_NAPF_Joanne_Segars

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.”

Categories: European Pensions, News
Tags: Europe, NAPF

About Author