A significant step forward taken to remove tax barriers to the CMU
The European Banking Federation (EBF), the European Fund and Asset Management Association (EFAMA), and the Federation of European Securities Exchanges (FESE) have released a joint report on the development of European capital markets and recommendations to enhance their competitiveness.
The European Capital Markets Report is a joint initiative authored by Oliver Wyman and co-developed by EFAMA, the European Banking Federation (EBF) and the Federation of European Securities Exchanges (FESE). This report reviews progress made towards the CMU and provides recommendations on how to improve the competitiveness of European capital markets.
Today, EFAMA has published our latest Monthly Statistical Release for February 2024.
Latest EFAMA research shows banks hold a 57% market share in EU fund distribution
Today, the European Fund and Asset Management Association (EFAMA) published the latest edition of its Market Insights series, titled “Investment fund distribution channels in Europe”.
The European Parliament today formalised its position on the Retail Investment Strategy, which significantly improves on the original European Commission proposal.
Former Italian prime minister Enrico Letta has released today his report on the future of the Single Market. Together with the recent statement of the Eurogroup in inclusive format on the future of CMU, and the upcoming report of Mario Draghi, there is increasing emphasis on EU competitiveness and the need to make urgent progress towards achieving a well-functioning Capital Markets Union to finance Europe’s necessary transitions.
The FCA’s recent report on the wholesale data market is an important and high-quality study which echoes many long-standing buy-side concerns. It finds evidence of unequal market power in terms of market concentration, highly profitable margins, opaque pricing practices, excessive charging, bundling practices and complex licensing agreements, all of which negatively impact data users. Much of this data is indispensable for users to stay in business and fulfil regulatory obligations.
The UK regulator (FCA) has taken a pragmatic approach in developing its Overseas Fund Regime (OFR) specifying the process that European retail funds would have to follow to gain, and keep, access to the UK market. This regime, which will replace the Temporary Marketing Permission Regime (TMPR), offers a streamlined access to the UK market in comparison to the current and time-consuming recognition process which is open to all overseas funds (...)
In a joint letter, EFAMA, together with the European Banking Federation (EBF), Insurance Europe, European Savings and Retail Banking Group (ESBG), Alternative Investment Management Association (AIMA), Association for Financial Markets in Europe (AFME), and the European Association of Cooperative Banks, have released a joint letter asking the European Commission to better coordinate the publication of new rules for the Sustainable Finance Disclosure Regulation (SFDR).
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.

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