This article was first published in Paperjam on 2 April 2024.
The Efama trade group has several recommendations on how to build stronger capital markets in Europe, and help individual investors at the same time.
This article was first published in Paperjam on 2 April 2024.
The Efama trade group has several recommendations on how to build stronger capital markets in Europe, and help individual investors at the same time.
New rules for the AIFMD and UCITS Directive were published on 26 March 2024 in the Official Journal of the European Union, making them law. These investment frameworks are European success stories and an integral part of the Capital Markets Union (CMU).
EFAMA has today published its latest Monthly Statistical Release for January 2024.
Thomas Tilley, Senior Economist at EFAMA, commented on the January 2024 figures: “January 2024 saw a continuation of the same trends as in 2023 - strong net inflows into fixed-income funds and ETFs. In comparison, multi-asset and equity funds saw much more subdued, or even negative, demand.”
EFAMA has published its latest International Quarterly Statistical Release for Q4 2023.
Thomas Tilley, Senior Economist at EFAMA, commented on the Q4 2023 figures: “Worldwide money market funds (MMFs) saw record net inflows of almost EUR 1.4 trillion over 2023, with about EUR 1 trillion of these net inflows in the United States. Many US investors were attracted by the higher returns offered by MMFs compared to bank deposits.”
EFAMA has released its policy recommendations to unlock private investment in Europe
EFAMA’s publication lays out the asset management sector’s policy priorities for the next five years, building on the in-depth expertise of our members. This includes practical recommendations for keeping Europe competitive and developing deeper, more integrated and liquid capital markets in Europe.
The recommendations focus around four main objectives:
Today, EFAMA has published its European Quarterly Statistical Release for the fourth quarter of 2023, together with an overview of the full year 2023.
EFAMA research estimates that 40% of daily FX flows are at increased risk
The proposal by the European Commission to amend the Benchmarks Regulation represents an overall welcome development in this field, seeking to introduce greater proportionality in the regulation of index providers. While we support the spirit of the proposal, EFAMA advocates retaining certain minimum safeguards applicable to non-significant benchmarks for the protection of users and end investors.
The Sustainable Finance Disclosure Regulation (SFDR) has promoted transparency in sustainable finance, however its use by market participants as a de facto ESG labelling regime has stretched it beyond its original intentions and not always been helpful. The current European Commission review needs to address how SFDR can provide clearer, more meaningful information for retail investors, promote transition finance, and align well with other relevant legislation.
EFAMA is pleased to share its response to the ESMA Call for Evidence on shortening the settlement cycle. In light of the imminent US move to T1, EFAMA supports a timely transition to T1 for Europe, while calling for a dynamic roadmap which can be adapted and modified as lessons from the US migration become known.
As the US moves to a T+1 settlement cycle from May 2024, the settlement mismatch between the US and EU will raise operational challenges as well as, we suspect, market structure changes. But another direct consequence of the mismatch will be in the enforcement of current EU regulation. In this paper, we identify those scenarios where EU rules will be tested, suggest the scope of that impact and ask policymakers to explore how the regulatory impacts of US T+1 can be mitigated.
EFAMA appreciates the European Commission's efforts to bolster the Capital Markets Union and increase the appeal and competitiveness of public capital markets. However, the investment industry wishes to highlight some concerns concerning this Directive. Against this backdrop, it is important to note that the European Union has recently enhanced its corporate governance and shareholders’ engagement practices to fortify financial market stability, uphold capital market integrity and safeguard investors’ interests.

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.