The International Federation of Accountants has submitted a response to the European Commission regarding a recent green paper on building a stronger capital markets union.

The main areas that the European Commission’s green paper seeks to address are improving access to financing for all businesses across Europe and investment projects, in particular start-ups, small and midsize enterprises and long-term projects; increasing and diversifying the sources of funding from investors in the European Union and all over the world; and making the markets work more effectively so that the connections between investors and those who need funding are more efficient and effective, both within Member States and cross-border.

In response to the paper, IFAC commented, “IFAC has welcomed the European Commission’s emphasis on jobs and growth, removing regulatory barriers and work toward a single rule book across the European Union. These issues are certainly not confined to the EU region and IFAC will continue to pursue the importance of effective regulatory collaboration, consistency and proportionality around the globe. IFAC supports the need for common and appropriate standards for use in SME Growth Markets, but cautions against the development of yet another new set of standards. Instead, IFAC recommends collaboration with international standard setters to holistically address the need and ensure consistency. IFAC also emphasizes the importance of auditing in effective capital markets, and recommends continued reflection on the implementation consistency and impact of the EU’s recent audit reforms.”