Thursday, March 2: Hellenic Capital Market Commission (HCMC)
Post date: Mar 09, 2017 11:34:6 AM
By Josh Fleming
On Thursday afternoon, a portion of the IEDP delegation met with representatives from the Hellenic Capital Market Commission (HCMC). Their representatives included Vice Chairmen Xenophon D. Avlontis and Troullinos P. Nocolas. The Commission, established in 1991, serves as the regulator for the Greek capital markets, including investment firms, mutual funds, companies listed on the Athens Stock Exchange and certain public management companies. The HCMC does not rely on government funds to operate; it is financed by its own fees, comprised of market exchange transactions, granting of licensing requirements, and other periodic fees, which allow it a degree of independence in its operations. With its regulatory power, the commission conducts audits to verify capital adequacy requirements and manage risk to the capital market and supervised entities.
One area of discussion centered on Greek participation in the Capital Markets Union, a plan by the European Commission to better integrate capital markets that fall outside of traditional bank finance and ultimately improve the ease of doing business throughout the EU. The goal is to mobilize 300 billion euro by generating a common pool for capital investment that will allow greater access to capital for small enterprises, new businesses, and infrastructure projects. The project also provides for reciprocity mechanisms when it comes to regulating financial activities on a cross-border basis for companies without a physical presence in an EU member state. That means that a German investment firm that has met the licensing and regulatory requirements to operate in Germany can conduct financial transactions in the Greek market without authorization from the HCMC, and vice-versa.
Given the uncertainty concerning the future of European integration, this project is one positive sign for future cooperation among EU nations.