In our latest Monthly Statistical Release, we show the main developments for the European investment fund market in December 2024 and include a first overview and analysis of the full year 2024.
In our latest Monthly Statistical Release, we show the main developments for the European investment fund market in December 2024 and include a first overview and analysis of the full year 2024.
Today, the European Fund and Asset Management Association (EFAMA) published the 20th issue of its Market Insights series, titled “Beyond fund consolidation: a more promising strategy for bigger funds and faster cost declines in Europe”. This publication compares the size and number of equity UCITS with that of US equity mutual funds and challenges the commonly held belief that fund consolidation will significantly lower the cost of funds in Europe.
In its recently published market report on the costs and performance of EU retail investment products, ESMA asserts that there are “substantial differences in the fund cost level between the EU and the US”. In its accompanying press release, ESMA emphasizes that “the market inefficiencies revealed by this higher cost level show the need to focus on the competitiveness of EU markets, within a future Savings and Investments Union.”
Since recent market disruptions such as the COVID-19 pandemic, the Financial Stability Board (FSB) and the International Organization of Securities Supervisors (IOSCO) have investigated how to make investment funds more resilient to liquidity shocks. The FSB published their recommendations in December 2023 and IOSCO is now looking into how to adjust their own 2018 recommendations along these lines.
In its response to IOSCO’s consultation on the revised recommendations for liquidity risk management for collective investment schemes, EFAMA welcomes the fact that IOSCO recognises aspects essential for proper risk management (e.g., asset managers’ primary responsibility and the absence of one-size-fits-all approaches).
Representatives of the EU and UK-based financial services industries met today (11 February 2025) in Brussels to discuss their respective priorities and shared challenges on the eve of the latest EU-UK Financial Regulatory Forum meeting and agreed on the following statement.
In its current form, the Retail Investment Strategy (RIS) will not achieve its goal of making investing more accessible to European citizens and could deter, rather than encourage, retail participation. In order to stand a chance of delivering on its objectives, the RIS needs urgent simplification. EFAMA have produced a short leaflet with our recommendations on how to simplify and reduce complexity in the current proposal.
Our key suggestions include:
Article 51(5) of the BMR provides that, unless the Commission has adopted an equivalence decision in relation to a particular third country, a third country administrator has been recognised or a third country benchmark has been endorsed, EU supervised entities may only use a third country benchmark in financial instruments, financial contracts and measurements of the performance of an investment fund that already reference the relevant benchmark prior to 31 December 2021.
EFAMA is grateful for the opportunity to comment on some messages included in the aforementioned roadmap. We believe that these comments should be made clear for all persons interested, especially to those who would like to participate in the upcoming public consultation.
Asset managers represent an important group of benchmark users, either in the case of index funds and exchange traded funds (ETFs) - where benchmarks are used as a target for index tracking funds - or in the case of the evaluation of an active manager’s performance - where the fund performance is measured against a selected index or a set of indices.
EFAMA, the voice of the European investment management industry, believes that, for retail clients, standardised disclosure of information can improve the comparability of financial products that promote environmental and/or social characteristics or have a sustainable objective. It will also contribute to the broader policy objectives of the Sustainable Finance Disclosures Regulation (SFDR) to enhance transparency towards end-investors, hold market participants accountable and fight greenwashing.
EFAMA, the voice of the European investment management industry, strongly supports the initiative to establish an EU Green Bond Standard (GBS). We believe that, thanks to the recommendations made by the TEG, the GBS has a great potential to effectively play its important role in financing assets needed for the low-carbon transition.
EFAMA comments the IASB's Exposure Draft (ED/2017/7). It supports IASB's efforts to improve consistency in the layout of the primary financial statements and the relevance of financial statements.
Proposals around new defined sub-totals and line items will improve consistency and will assist in the implementation of electronic reporting format initiatives.

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.