EFAMA welcomes the opportunity to respond to the EBA on its proposal for a new prudential regime for investment firms. As the EBA is aware, the activity of portfolio management on behalf of thirdparty clients broadly falls under three separate EU legal regimes:

i. Individual discretionary portfolio management performed by investment firms on a client-byclient basis, authorised under and complying with the Markets in Financial Instruments Directive, as per Annex I Section A, point 4 (as recently amended by MiFID II);

ii. Collective portfolio management performed by a UCITS management and/or investment company, authorised under and complying with the UCITS Directive; and

iii. Collective portfolio management performed by an alternative investment management company, authorised under and complying with the AIFM Directive.