Financial watchdogs will increase their scrutiny of investment transactions in an attempt to reassure investors it will be safe for them to participate in the European Commission’s proposed Capital Markets Union, the National Association of Pension Funds conference heard today.

Steven Maijoor, chairman of the European Securities and Markets Authority, said regulators needed to convince investors to provide capital to companies and infrastructure as an alternative to bank loans, which are still tough to source following the 2008 credit crisis.