Brussels, 24 April 2020. In the current institutional cycle, the Capital Markets Union (CMU) remains as relevant as ever. However, it needs rethinking at EU level and real commitment from member states. The capacity of capital markets to enhance the resilience of our societies as a whole, especially when confronted with unprecedented shocks such as COVID-19, should be carefully re-examined.

European households need a more balanced, diversified and lifecycle adjusted asset allocation. This requires access to suitable products, affordable/unbiased investment advice and open distribution channels. Investors will also have to adapt to the lower-for-longer rate environment, with fewer options to generate consistent returns. Asset managers and institutional investors have a duty to act in the best interest of their clients, and therefore should be equipped to seize the opportunities and tackle the risks arising from ESG factors. Transparency, proportionality, aligned incentives, and ultimately performance are crucial for mainstreaming sustainability, while contributing to economic recovery.

This Task Force Report features detailed analytical sections on retail investors, asset/fund managers, insurers, pension funds and sustainable finance accompanied by relevant policy and market recommendations.

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