EFAMA publishes its latest Monthly Statistical Release for July 2024.
EFAMA publishes its latest Monthly Statistical Release for July 2024.
Regulatory clarity required to sustain further growth
This report looks specifically at the evolving trends of the equity asset class of sustainable UCITS, whose share is the highest (53%) in total sustainable UCITS funds. It highlights their role as investment vehicles in facilitating the green transition. The universe of sustainable equity UCITS funds is defined based on Morningstar’s classification of sustainable financial instruments1. This means funds must claim to have a sustainability objective, and/or use binding ESG criteria for their investment selection.
EFAMA, EBF, AIMA, FIA and ISDA (the ‘Associations’) welcome the co-legislators' political agreement on EMIR 3.0, which was endorsed by the Council and European Parliament on 14 February and 4 March 2024, respectively.
EFAMA publishes its latest International Quarterly Statistical Release for Q2 2024.
EFAMA has today published its European Quarterly Statistical Release for Q2 of 2024.
EFAMA identifies four key areas for improvement
EFAMA welcomes the high degree of ambition and clear call to urgent action put forward by former European Central Bank President Mario Draghi to address the EU's competitiveness challenges and reverse the ongoing trend of slowing growth and declining productivity. Improving the EU’s global competitiveness is vital for preserving EU’s prosperity in the long run, enhancing investment opportunities and attracting more capital into the EU.
EFAMA has published its latest Monthly Statistical Release for June 2024.
Thomas Tilley, Senior Economist at EFAMA, commented: “The ECB rate cut of early June resulted in strong net inflows into bond UCITS throughout the month.”
The main developments in June can be summarised as follows:
Ever since the term “shadow banking” has emerged from the FSB’s working circles in the immediate aftermath of the 2008 global financial crisis[1], our association has consistently argued that its use as a reference to regulated asset management companies and their funds is inaccurate and mis-leading.
Andreas Stepnitzka, EFAMA Deputy Director, Regulatory Policy, comments:
The Commission aims to present a legislative proposal to address the tax-induced debt-equity bias, also to support the action plan for the Capital Markets Union and to encourage companies to finance their investment through equity contributions rather than through debt financing.
EFAMA provided high-level comments to the Commission’s consultation on the potential review of the Directive on Distance Marketing of Consumer Financial Services.
We agree with the Commission’s interpretation that the Directive is seen as a “safety net” for financial services not already subject to product-specific legislation. Fund and asset managers are already subject to various, more stringent and detailed sectoral legislations, such as (but not limited to) UCITS, AIFMD and MiFID as well as the (more recent) Cross-Border Fund Distribution Directives.
The asset management industry recognises the much-needed adoption of mandatory European sustainability reporting standards under the Corporate Sustainability Reporting Directive (CSRD) proposal. Insufficient availability of meaningful, comparable, reliable, and public Environmental, Social and Governance (ESG) data is a key impediment to realising the full potential of the EU's sustainable finance regulatory framework. Financial market participants' sustainable investments need to be driven by real, verifiable and reported ESG metrics of company's activities and financial risks.
Nine associations (AFME, AIMA, EAPB, EBF, EFAMA, FIA, ICI, ISDA, SIFMA AMG) welcome the Commission's decision to grant a time-limited equivalence decision in respect of UK CCPs. However, when this time-limited equivalence decision expires on 30 June 2022, there remains a significant risk of disruption to clearing for EU firms and to their access to global markets.

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