By Vincent Ingham
Director of Regulatory Policy, EFAMA.
EFAMA's 'Asset Management in Europe' report provides an in-depth analysis of recent trends, focusing on where investment funds and discretionary mandates are managed in Europe.
The latest edition (December 2022) has several new features, including: an extensive section on the role of asset managers in promoting ESG, including in discretionary mandates; concrete examples of how asset managers integrate ESG into sovereign debt analysis and support sustainable projects through green bond investments, including insights from abrdn, Allianz Global Investors, APG, AXA IM, BlackRock, Candriam, Generali Investments, Ostrum Asset Management, Ninety One, Nordea Asset Management, and Pictet Asset Management; data on clients in both investment funds and discretionary mandates; an analysis by McKinsey & Company on the future of sustainable investing; a contribution by Cerulli Associates on how European insurers use third-party asset managers.
The Fact Book is our flagship publication. It provides in-depth analysis of trends in the European investment fund industry, including extensive statistics and information about products, asset classes and distribution across all markets. It also includes a complete overview of regulatory developments across 28 European countries.
For the first time, a digital version of the Fact Book is made freely available on the EFAMA website. An Excel-based statistical package, containing more than 50 tables with historical time series on net assets, net sales and number of UCITS and AIFs at the country level, is available for purchase.
Financial literacy is essential for making sound decisions when managing savings. If European citizens do not understand financial concepts such as risk diversification, compound interest and real rate of return, they won’t know where to start or what to ask should they wish to invest their savings. A lack of sufficient financial literacy in most European countries helps explain why the vast majority of households don’t directly invest any of their savings in the capital markets.
EFAMA's Investor Education Platform has now produced an animated brochure titled ‘Investing for a better future – 5 tips to do more with your savings’ to help get people started with investing. It has been translated into several European languages.
With European government no longer able to provide financial security to support citizens in later years, saving for retirement is key. Individuals need to save enough for retirement to ensure adequate income in old age.
EFAMA helps by raising awareness of the importance of saving for retirement and encouraging European authorities to further modernise relevant EU legislation. This includes strengthening competition in the occupational and personal pension markets, and fostering cross-border activities of pension providers and asset managers. Such legislation should seek to create economies of scale, to benefit savers.
EFAMA is a co-initiator of the European Retirement Week.
Building a Capital Markets Union (CMU) serving the needs of European citizens and businesses is as ambitious as it is essential: the effort will enable pensioners and savers to share in the upside of Europe’s economic recovery. In the process, European capital markets also become more efficient and better integrated. This long-term vision is key to financing European innovation and to supporting the transition towards a more sustainable economy.
Increasing retail investors’ participation in capital markets is an essential component for building an effective CMU. EFAMA relentlessly advocates for effective disclosure rules and consumer empowerment.
Asset managers unleash the vast potential of sustainable finance by channelling capital into ESG investments and engaging with investee companies to improve their sustainability profile and foster long-term prosperity.
To strengthen the asset managers' role in financing the green transition, EFAMA contributes to the development and implementation of the EU Sustainable Finance agenda. This includes initiatives to fight greenwashing, increase transparency, improve the flow of ESG data and integrate sustainability in corporate governance.
By Vincent Ingham
Director of Regulatory Policy, EFAMA.
Well-functioning and liquid capital markets are fostered by an efficient market structure and supporting legislative frameworks. A diverse and efficient market structure reduces the costs of trading whilst promoting best execution. This optimises funding opportunities for issuers and maximises returns for investors and savers.
EFAMA reacted to the Renewed Sustainable Finance Strategy published by the European Commission today.
Following the publication of the European Commission report confirming the settlement discipline regime will be reviewed, Susan Yavari, Regulatory Affairs Adviser at EFAMA, commented:
EFAMA has released its 2021 industry Fact Book.
The 2021 Fact Book provides an in-depth analysis of trends in the European fund industry, an extensive overview of the regulatory developments across 29 European countries and a wealth of data.
The European Fund and Asset Management Association (EFAMA) has today published its response to the ESMA consultation on the legislative review of the EU Money Market Fund Regulation (MMFR).
EFAMA commends the efforts of the Czech Presidency and Member States in reaching an agreement on the review of MiFIR/MiFID. EFAMA members welcome the Council position which unequivocally comes down on the side of competitive, globally attractive markets, driven by diversity and innovation and the right tools and infrastructures to support the retail investor.
EFAMA, together with EBF, Insurance Europe, EACB, EAPB, ESBG and EUSIPA, issued a public letter addressed to Vice-President Dombrovskis, Commissioners McGuinness and Director-General Berrigan, remarking the importance of advice for European retail investors and the need to maintain the coexistence of fee-based and commission-based advice.
EFAMA is pleased to publish the revised version of its PRIIPs KID Q&A. The document aims at offering continued support to Euopean fund managemers and enable a common understanding of PRIIPs KID requirements.
EFAMA wholeheartedly supports ESMA’s objective of ensuring a consistent and harmonised application of the MiFID II product governance requirements. In our response to their consultation on the topic, we raised the following points:
EFAMA welcomes the European Securities and Market Authority’s continuous commitment to creating a single market for investment funds, confirmed by the draft regulatory standards currently under consideration. These RTS/ITS would further harmonise information that asset managers should provide to their national competent authorities before marketing or managing an investment fund on a cross-border basis, thus facilitating intra-EU product distribution.
EFAMA welcomes the OECD's work on Schedule C: Exclusion of Revenues and profits from Regulated Financial Services from the scope of Pillar One, in particular the amendments to the definition of “Asset Manager", licensing asset management as a business, the level of regulaton and the activities list.
Discover the 6 reasons why your organisation should become a member of EFAMA.
Our members enjoy significant benefits including the opportunity to shape the industry positions, get first-hand access to regulatory and political intelligence, engage with industry peers and policymakers, and take part in EFAMA events.
Our three membership categories cater to the wide range of organisations that make up and support the investment management industry in Europe.
Keynote speech delivered by European Commissioner Mairead McGuinness at EFAMA's Investment Management Forum 2022 (Brussels, 17-18 NOV)