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The EU Commission has published a comprehensive package of measures with the stated aim of creating a more integrated financial system. The proposed legislative measures are part of the broader Savings and Investment Union strategy.
On 4 December 2025, the EU Commission published a package of legislative proposals with the aim of removing sources of fragmentation in EU capital markets. Through publication of the proposed measures, the EU Commission is delivering a number of policy measures identified under its Savings and Investment Union (SIU) strategy, published in March 2025.
The legislative proposals:
- intend to achieve operational simplification for UCITS management companies and AIFMs. The EU Commission proposes changes to Directive 2009/65/EC (UCITS Directive) and Directive 2011/61/EU (AIFMD) with the aim of removing barriers to cross-border operations for fund managers and their EU groups, eliminating national discretions that could lead to diverging national requirements and supervisory practices, implementing an EU-wide depositary passport and strengthening ESMA's powers to coordinate activities among national competent authorities. Read more
- aim to reduce barriers to the distribution of EU-authorised funds. The proposed transfer of rules on cross-border marketing from the UCITS Directive and the AIFMD into Regulation (EU) 2019/1156 (Cross-Border Distribution Regulation) aims to reduce barriers to the cross-border operations of investment funds by ensuring a common standard across the EU and minimising gold-plating by Member States. Additional amendments to the Cross-Border Distribution Regulation propose a simplification of the notification process and marketing communications. Read more
- reform trading and post-trading infrastructures. The EU Commission proposes transferring supervision of significant trading venues, CCPs and CSDs to ESMA, alongside harmonised rules for trading venues, a new Pan-European Market Operator status, an enhanced consolidated tape and integration of DLT and e-money tokens into CSD settlement frameworks. The Settlement Finality Directive would be converted into a regulation. Read more
- expand the DLT Pilot Regime with a simplified regime for smaller operators, and transfer supervision of cryptoasset service providers from national authorities to ESMA. Read more
Next steps
These are preliminary proposals that must undergo the full EU legislative process, with the legislative proposals now under review by the EU Parliament and the Council of the EU. A number of amendments are likely to be made.
Related documents
- EU Commission Communication on the further development of capital market integration and supervision within the Union, click here_
- Master regulation – Proposal for a regulation regarding the further development of capital market integration and supervision within the Union, click here_ || Annexes, click here_
- Master directive – Proposal for a directive regarding the further development of capital market integration and supervision within the Union, click here_ || Annexes, click here_
- Proposal for a Settlement Finality Regulation, click here_ || Annex, click here_
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