On May 7, 2024, the European Securities and Markets Authority (ESMA) published its long-awaited call for evidence on the review or the Undertakings for Collective Investment in Transferable Securities (UCITS) Eligible Assets Directive (EAD). Since the adoption of UCITS EAD almost two decades ago the number and variety of financial instruments traded on financial markets has increased considerably. This led to a growing uncertainty around whether some categories of financial instruments such as AT1 bonds, commodities, crypto assets, emission allowances, structured and leveraged loans, etc., are eligible for investment within UCITS products or not. In turn, this uncertainty led to

As a market observer, I have seen that no other topic has got so much attention from all parts of the investment ecosystem over the course of the last three years than ESG investing. From a European perspective, it is clear that the “Action Plan on Financing Sustainable Growth” launched by the European Commission (EC) is the main driver for the increased interest from investors in ESG investing. I don’t think that ESG would still be a niche topic if the EC wouldn’t have put so much pressure on investors and fund promoters, but the launch of an action plan

One of the largest hindrances for the distribution of sustainable investments (SRI/ESG) is the fact that fund promoters do not use a common taxonomy to describe their investment approaches. This different wording confuses investors and holds them back from investing, since it isn’t clear to them which approach would best suit their needs. With its sustainable finance initiative the European Commission (EC) is seeking to build a framework that fosters a more sustainable investment environment. From my point of view such a taxonomy and the resulting unified classification system are needed to accelerate the integration of nonfinancial criteria into the

Where should multinational tech companies pay income tax? Changing international rules devised a century ago will be difficult, but Europe is right that asset-light, data-hungry businesses like Google and Facebook merit fresh thinking. The European Commission will this week propose a tax on digital groups’ revenue of around 3 percent, according to Reuters. The move aims to plug an imbalance that sees international digital companies pay a rate of 10 percent in the EU, according to the Commission, compared with non-digital businesses’ 23 percent. Imposing a flat levy on sales is clumsy, as it penalises less profitable firms and investment. But it

Lots of people seem sad that the merger of London Stock Exchange Group with Deutsche Boerse has been blocked. The European Commission, which did the blocking, is sad that LSE refused to allay competition concerns by selling its trading platform, MTS. LSE is sad that Brussels insisted on that to begin with. Deutsche Boerse is sad that there will now be no $30 billion European infrastructure giant. Deciphering exactly who is to blame is harder. LSE boss Xavier Rolet is the one who refused to sell MTS even though antitrust tsar Margrethe Vestager had made clear his original remedy – selling