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Conservative Expectations for the Upcoming Financial Services Action Plan

At the European Parliament’s Long Term Investment intergroup meeting on 22 September 2015 Niall Bohan, Head of the unit for the “Capital Market Union” at the European Commission’s DG FISMA, expressed a conservative attitude in relation newer developments on the capital markets.

These points are expected to be reflected in the upcoming Financial Services Action Plan (due to be published 30 September 2015).

In particular, he made it clear that crowdfunding initiatives are of interest to future capital markets regulation but that they are not yet ready for regulation, and more controversially, that the same is the case for the green bonds market.

Arguably, the need for regulation of the green bonds market is a pressing one in the face of frequent “greenwashing” in the absence of clear legal standards. Bohan stated however that the market needs to stabilise further before being regulated, pointing out that we do not yet know what green means. In the case of green bonds, it may however be argued that not only can the market be damaged by inappropriate legislation, but also by being applied to everything in the absense of clear legal standards of what constitutes a green bond.

Should you have any questions about the Capital Markets Union or the Long Term Investment intergroup meetings, please contact Christian Ernhede (