The Exchange has responded to the consultation on future priorities on the EU Corporate Governance Action Plan. We believe the Commission is right to review the medium and long term Action Plan measures and should only proceed in those areas where there is general consensus that they would be beneficial.
We fully support the commitment to the better regulation agenda: before any new measures are taken forward, there must firstly be an evidenced market need for intervention. Extensive market consultation is then essential and a full cost benefit analysis needs to be conducted for all new regulatory measures, to weigh up the benefits against the costs and burdens of implementation.
Bearing this is mind; for a number of the measures outlined in this paper we do not believe that there is sufficient market need to justify intervention at EU level. This should be examined before any of the proposals are taken forward.