|
Tags
- Investment Funds (0)
-
- UCITS Directive (6)
-
-
|
Eurofi Report 5 Regulatory improvements Investment products
|
 pdf
|
 178.53 Ko
|
 06-02-2009 |
-
The1current financial crisis and the
alleged Madoff fraud have revealed
risks and gaps in investment
products regulation and supervision
that need to be solved at the EU and
possibly global regulatory levels
with clarified and more harmonized
responsibilities and liabilities along
the fund value chain. Assessing
further harmonisation opportunities of the framework of non UCITS investment
products should also be a major objective for the Commission following a
clarification of the needs of retail and institutional investors.
1. Clarifying responsibilities along the fund value chain and
launching a harmonization effort across Europe are major
priorities:
 Tags : UCITS Directive,
Asset Management,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Competing products,
Risk management,
 Type : Event Report
-
|
EUROFI PRIORITIES FOR ECOFIN
|
pdf
|
115.97 Ko
|
10-09-2008 |
-
Eurofi, the dedicated think-tank for
the integration of financial services
in Europe, is organizing a conference
on September 11 and 12 to discuss
the proposals put forward by the
financial industry at the ECOFIN, set
against a global crisis with leaders
facing new challenges.
This crisis shows that the supervision of cross-border financial groups must be
adapted in order to factor in the rapid spillover of risks, the internationalization
of their activities and the centralized organization of their financial management
and strategy.
That is why Eurofi is proposing a series of pragmatic measures to improve the
supervision of these groups and the prevention of crises, notably including:
- The establishment of colleges grouping the European supervisors concerned
together, which would be given a similar mandate in order to ensure identical
protection for all of the group’s European customers;
- A specific role entrusted to the supervisor from the home European country,
ensuring that decisions relating to capital requirements and the organization
of supervision can be taken quickly and effectively, and that information is
immediately made available to all the other supervisors;
- The mission entrusted to the European supervisor committees (CEBS and
CEIOPS), to facilitate the resolution of possible differences of views between
supervisors from a given college and check that the conditions for fair
competition between the financial institutions are brought about.
Tags : CEIOPS,
Occupational Pensions,
Solvency II directive,
Microcredit,
UCITS Directive,
Management company,
UCITS,
Cross-border fund processing,
Prudential rules,
Accounting rules,
CEBS,
Regulation,
Supervision,
Type : Event Report
-
|
UCITS Regulatory framework
|
pdf
|
122.45 Ko
|
10-09-2008 |
-
There is a strong agreement among industry stakeholders on the added value of the proposals made for reviewing the UCITS Directive (UCITS IV) ie streamlining of the notification process, fund mergers, pooling / master feeder techniques, Key
Three main conditions indeed need to be fulfilled for a MC to manage UCITS funds on a remote basis:
- UCITS funds receiving services from a MC based abroad must continue to be managed and administered by the MC in compliance with the relevant rules of the UCITS domicile
- A clear definition of the respective responsibilities of the Fund regulator and of the MC regulator must be possible as well as cooperation mechanisms between regulators and interfaces between regulators, the MC and the depositary
-The conditions required for passporting MC collective portfolio services should generate sufficient economic benefits and not lead to regressions in Member States (MSs) where administrative activities can be widely outsourced on a cross-border basis
The assessments conducted by the Eurofi working group show that there are no major technical obstacles at present for MCs to fulfill these conditions on a remote basis with modern communication means. Most administrative activities involve data processing that can be operationally conducted cross-border. In addition initial proposals were made to define a framework of responsibilities ensuring that investor protection is safeguarded in this context. These principles could be defined at Level I of the Directive and further detailed at Level II:
-The current responsibilities of the Management Company and the Depositary should remain unchanged
- Supervisory responsibilities should be allocated between the Fund regulator and the Management Company regulator with leadership given to the Fund regulator for matters regarding the Fund
-A framework should be defined for cooperation, arbitration and escalation mechanisms between supervisors, applicable to the authorization process and to the on-going monitoring of the fund3.
But a detailed operational analysis of the way administrative activities are conducted on a day-to-day basis shows that the current differences in local laws across EU countries and specific local requirements that impact administrative activities of the fund – eg NAV calculation or fund accounting with differing splits of responsibilities between the MC and the depositary, differing methods, delegation rules etc... - make the remote performance of some services and the maintenance of expertise more complex in a cross-border environment.
3 This should be facilitated by the rules for supervisory cooperation described in the UCITS IV proposal
Investor Document and supervisory cooperation. On the other hand the Management Company Passport (MCP) concept has remained controversial particularly for contractual funds which are not legal entities (eg FCPs). The concept of the MCP already exists in the current UCITS III framework but is limited to corporate funds (eg SICAV which have a legal personality).
In July 2008 CESR was requested by the Commission to provide advice on remaining technical questions that need to be addressed when introducing a MCP.
Eurofi and a working group composed of industry representatives from all parts of the value chain, ie asset managers, depositaries and administrative agents operating in different EU financial centers1, assessed during the first semester of 2008 the practical conditions for UCITS funds to receive services from a remote management company (MC) based in a foreign EU member state. Our evaluation has particularly focused on the administrative activities performed by the MC2 which are at the heart of the current debate evolving around investor protection and economic issues.
Our overall conclusion at this stage is that implementing a MCP is a feasible and economically attractive objective to improve the efficiency of the EU funds industry but should be implemented with a staged approach.
We consider that conditions for Management Companies (MC) to operate cross-border could be significantly optimized in the short run with an adequate framework of responsibilities defined at Level I. MCs should in particular no longer be required to maintain a capitalized legal entity in the fund domicile to perform their activity which would lead to significant potential savings...
Tags : UCITS Directive,
Management company,
UCITS,
Type : Event Report
-
|
Session 01A Innovation in EU Funds
|
pdf
|
168.9 Ko
|
05-02-2009 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [1A] - TAKING INTO
ACCOUNT INNOVATION IN
THE EU INVESTMENT FUND
REGULATORY FRAMEWORK:
Keeping up with innovation
in secured conditions
through potential evolutions in the product or distribution
framework of investment funds.
The Panel
Moderator: Marc Truchet, Senior fellow consultant, Eurofi
Panellists: Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Alain Leclair, Chairman, French Asset Management
Association;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding AG, Chaiman, BVI;
Jean-Paul Mazoyer, General Management Committee
Member in Charge of Development, Crédit Agricole Asset
Management;
Lisa Rabbe, Managing Director, Goldman Sachs
International
Tags : UCITS Directive,
Private placement,
Non harmonised funds,
UCITS,
Competing products,
Hedge funds,
Type : Compte-rendu
-
|
Investment funds Innovation Executive Summary
|
pdf
|
119.8 Ko
|
11-09-2008 |
-
Financial innovation is constant
in the investment funds
market, driven by the need
for the industry to continue to
ensure differentiation and find
new sources of performance
and revenue and by investor
demand eg for new types
of products less correlated with the stock exchange. Producers
use different approaches to answer these needs: diversification of
asset (eg new geographies or industrial sectors), new investment
techniques or strategies (eg hedge funds with the objective to offer
“absolute return” regardless of market conditions), new product
concepts (eg guaranteed products or lifestyle funds for retail
investors).
Local regulatory product frameworks have been evolving over time
to accommodate these evolutions and needs. The EU regulatory
framework also needs to keep pace with these evolutions
to create a secure framework for the passportability of new
products across European countries and to create innovative
product labels that can be exported successfully out of
Europe. The UCITS Directive, which is the only existing European
product legislation for investment funds has evolved over time
despite the constraints of the legislative process, since the UCITS
directive was not drafted following the Lamfalussy principles. The
list of eligible assets allowed in the UCITS framework has been
expanded over time to keep track with financial innovation. But the
increasing volume of investment funds and investment products (eg
certificates, notes…) that do not fall under the UCITS label and the
high proportion of UCITS funds sold to institutional investors (25%
of AuM according to the EU Commission) illustrate the limits of the
present framework.
Tags : UCITS Directive,
UCITS,
Competing products,
Hedge funds,
Private equity funds,
Type : Executive summary
-
|
Investment funds Executive summary
|
pdf
|
812.27 Ko
|
03-12-2007 |
-
Optimising cross-border distribution and processing of investment
funds in the EU
Eurofi conference: 4 December 2007
EU Parliament
Executive summary of the Eurofi initiative
1. Eurofi worked over the last 12 months with a representative group of fund industry
leaders covering the different steps of the value chain1, to make proposals for
improving cross-border fund distribution and processing in the EU:
UCITS funds are a booming market in Europe: 2
• At the end of 2006 €7550 billion were managed through investment funds domiciled
in the EU representing 34% of the worldwide fund industry. UCITS funds represented
79% of this total with €5900 billion managed through approximately 31000 funds.
• The market growth has been very strong for UCITS and sustained over the recent
years: +80% growth between 2003 vs 2006 and a two-fold increase since 1998.
Cross-border and third-party fund distribution is developing in the EU3:
• Cross-border funds (ie registered in 5 countries or more) represented around 30% of
net asset flows in 2005 and intra-EU cross-border fund transactions are considered
to represent around 20% of total transactions in the EU
• Major distributors evaluated that in 2006, 55% of their activity was third-party with
35% in foreign funds.
Many operational and legal obstacles limit at present the efficiency of UCITS cross-border
distribution and processing in the EU. These obstacles are becoming increasingly important
to address as cross-border and open architecture distribution develop. Solving these
inefficiencies could further enhance the competitiveness of the EU funds industry by
reducing complexity and eliminating certain operational risks and extra-costs.
The EU Commission has focused the proposals made in the White Paper on activities
related to regulatory compliance, management company overhead and asset management
which are considered to represent around 15% of total costs and on some components of
distribution (total distribution costs were evaluated to represent 60% of total costs)4.
1 The following institutions were part of the Eurofi working group co-chaired by W. Klinz (MEP), E. Corley (Allianz
GI) and A. Papiasse (BNP Paribas) :
- Banks (including asset management and processing entities): BNP Paribas, Unicredit Group / Pioneer AM /
Bank Austria Creditanstalt, Crédit Agricole, Fortis
- Asset managers: JPMorgan AM, Natixis Global Associates, Union Investment, HSBC IM, Allianz GI, DWS
-Processing service providers: Citigroup, Schroders, Société Générale, CACEIS, State Street,
- Stock exchanges: Euronext, Bourse de Luxembourg
2 Source : EFAMA statistics
3 Source FERI statistics and FERI 2006 European Fund Buyer Survey. A rising proportion of UCITS are also sold
outside the EU (around 15% of net sales)
4 Source: CRA study September 2006 - average production and distribution costs for equity funds in a sample of
EU markets . CRA estimated that total production and distribution costs amounted to ~150 bp on average in a
sample of EU countries. The study did not cover the whole value chain (eg trading costs are not included). We
were not able to verify the validity of these costs or the methodology used, but these results give an indication of
the breakdown of costs.
Asset management costs comprise: cash management, research, asset allocation, operational asset
management and dealing decisions. Processing and administration costs cover fund and client administration,
regulatory compliance of the fund and management company overheads and systems. Distribution and marketing
costs cover new product development, compensation to distributors, documentation, promotional activity…
Tags : UCITS Directive,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Automation,
Standardisation,
Type : Executive summary
- Asset Management (1)
-
-
|
Eurofi Report 5 Regulatory improvements Investment products
|
pdf
|
178.53 Ko
|
06-02-2009 |
-
The1current financial crisis and the
alleged Madoff fraud have revealed
risks and gaps in investment
products regulation and supervision
that need to be solved at the EU and
possibly global regulatory levels
with clarified and more harmonized
responsibilities and liabilities along
the fund value chain. Assessing
further harmonisation opportunities of the framework of non UCITS investment
products should also be a major objective for the Commission following a
clarification of the needs of retail and institutional investors.
1. Clarifying responsibilities along the fund value chain and
launching a harmonization effort across Europe are major
priorities:
Tags : UCITS Directive,
Asset Management,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Competing products,
Risk management,
Type : Event Report
- Private placement (1)
-
-
|
Session 01A Innovation in EU Funds
|
pdf
|
168.9 Ko
|
05-02-2009 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [1A] - TAKING INTO
ACCOUNT INNOVATION IN
THE EU INVESTMENT FUND
REGULATORY FRAMEWORK:
Keeping up with innovation
in secured conditions
through potential evolutions in the product or distribution
framework of investment funds.
The Panel
Moderator: Marc Truchet, Senior fellow consultant, Eurofi
Panellists: Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Alain Leclair, Chairman, French Asset Management
Association;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding AG, Chaiman, BVI;
Jean-Paul Mazoyer, General Management Committee
Member in Charge of Development, Crédit Agricole Asset
Management;
Lisa Rabbe, Managing Director, Goldman Sachs
International
Tags : UCITS Directive,
Private placement,
Non harmonised funds,
UCITS,
Competing products,
Hedge funds,
Type : Compte-rendu
- Non harmonised funds (5)
-
-
|
Eurofi Report 5 Regulatory improvements Investment products
|
pdf
|
178.53 Ko
|
06-02-2009 |
-
The1current financial crisis and the
alleged Madoff fraud have revealed
risks and gaps in investment
products regulation and supervision
that need to be solved at the EU and
possibly global regulatory levels
with clarified and more harmonized
responsibilities and liabilities along
the fund value chain. Assessing
further harmonisation opportunities of the framework of non UCITS investment
products should also be a major objective for the Commission following a
clarification of the needs of retail and institutional investors.
1. Clarifying responsibilities along the fund value chain and
launching a harmonization effort across Europe are major
priorities:
Tags : UCITS Directive,
Asset Management,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Competing products,
Risk management,
Type : Event Report
-
|
Session 05B EU Priorities for UCTS & Securities Infrastructures
|
pdf
|
169.35 Ko
|
09-11-2008 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [5B] - EU PRIORITIES
FOR INVESTMENT FUNDS
AND EU SECURITIES
INFRASTRUCTURES:
Evolution of the UCITS
regulatory framework,
remaining challenges for securities infrastructures
The Panel
Moderators: Piia-Noora Kauppi, MEP, Committee on Economic and
Monetary Affairs, European Parliament;
Wolf Klinz, MEP, Committee on Economic and Monetary
Affairs, European Parliament
Panellists: Marc Raynaud, Global Head of Mutual Fund Distribution,
BNP Paribas Investment Partners;
David Wright, Deputy Director General, DG Internal Market
and Services, European Commission
Carlo Comporti, Secretary General, Committee of European
Securities Regulators (CESR);
Gertrude Tumpel-Gugerell, Member of the Executive
Board, European Central Bank (ECB);
Alain Closier, Global Head of Securities Services, Société
Générale;
The Debate
The non-harmonised market was growing considerably faster than
harmonised funds, commented Wolf Klinz, MEP, Committee on Economic
and Monetary Affairs, European Parliament, the moderator, opening the
debate. UCITS funds were set up for the retail investor and yet a quarter
of them were being sold to institutions. This suggested the need for more
instruments to be eligible for inclusion, he said.
In addition, the brand had proved successful in places such as the Far East
and Latin America, but competition within the European fund industry was
hampering efforts to expand the brand even further. “With problems such
as manual processing, we are unable to exploit economies of scale,” argued
Mr Klinz.
Tags : Investment services and regulated markets (MiFID),
Non harmonised funds,
UCITS,
Competing products,
Custody,
T2S,
Collateral,
Code of conduct,
Consolidation,
Type : Event Report
-
|
AIFM
|
pdf
|
141.32 Ko
|
07-04-2010 |
-
Proposals regarding proportionality principles and the obligations of the depositary in the AIFM Directive
These proposals for adjustments to the Gauzès report on the AIFM Directive have been drafted by Eurofi with the input of a group of representative asset managers, custodians, valuators, prime brokers and insurance groups operating in the EU. Their objectives are to better take into account certain operational constraints and improve the allocation of responsibilities in the requirements of the Directive while maintaining its coherence and initial objectives.
The following players contributed to this initiative: Amundi Asset Management (formerly Crédit Agricole AM), AXA Investment Managers, The Bank of New York Mellon, BNP Paribas Investment Partners and Securities Services, CACEIS, Citi, Deutsche Bank, Fidelity International, Goldman Sachs, JP Morgan, Hedge Fund Standard Board (HFSB), MidEuropa, Pioneer, Prudential, Société Générale and Union Investment.
Tags : Non harmonised funds,
Open ended real estate funds,
Depositaries,
Hedge funds,
Private equity funds,
Type : Compte-rendu
-
|
Session 01A Innovation in EU Funds
|
pdf
|
168.9 Ko
|
05-02-2009 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [1A] - TAKING INTO
ACCOUNT INNOVATION IN
THE EU INVESTMENT FUND
REGULATORY FRAMEWORK:
Keeping up with innovation
in secured conditions
through potential evolutions in the product or distribution
framework of investment funds.
The Panel
Moderator: Marc Truchet, Senior fellow consultant, Eurofi
Panellists: Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Alain Leclair, Chairman, French Asset Management
Association;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding AG, Chaiman, BVI;
Jean-Paul Mazoyer, General Management Committee
Member in Charge of Development, Crédit Agricole Asset
Management;
Lisa Rabbe, Managing Director, Goldman Sachs
International
Tags : UCITS Directive,
Private placement,
Non harmonised funds,
UCITS,
Competing products,
Hedge funds,
Type : Compte-rendu
-
|
Investment funds Executive summary
|
pdf
|
812.27 Ko
|
03-12-2007 |
-
Optimising cross-border distribution and processing of investment
funds in the EU
Eurofi conference: 4 December 2007
EU Parliament
Executive summary of the Eurofi initiative
1. Eurofi worked over the last 12 months with a representative group of fund industry
leaders covering the different steps of the value chain1, to make proposals for
improving cross-border fund distribution and processing in the EU:
UCITS funds are a booming market in Europe: 2
• At the end of 2006 €7550 billion were managed through investment funds domiciled
in the EU representing 34% of the worldwide fund industry. UCITS funds represented
79% of this total with €5900 billion managed through approximately 31000 funds.
• The market growth has been very strong for UCITS and sustained over the recent
years: +80% growth between 2003 vs 2006 and a two-fold increase since 1998.
Cross-border and third-party fund distribution is developing in the EU3:
• Cross-border funds (ie registered in 5 countries or more) represented around 30% of
net asset flows in 2005 and intra-EU cross-border fund transactions are considered
to represent around 20% of total transactions in the EU
• Major distributors evaluated that in 2006, 55% of their activity was third-party with
35% in foreign funds.
Many operational and legal obstacles limit at present the efficiency of UCITS cross-border
distribution and processing in the EU. These obstacles are becoming increasingly important
to address as cross-border and open architecture distribution develop. Solving these
inefficiencies could further enhance the competitiveness of the EU funds industry by
reducing complexity and eliminating certain operational risks and extra-costs.
The EU Commission has focused the proposals made in the White Paper on activities
related to regulatory compliance, management company overhead and asset management
which are considered to represent around 15% of total costs and on some components of
distribution (total distribution costs were evaluated to represent 60% of total costs)4.
1 The following institutions were part of the Eurofi working group co-chaired by W. Klinz (MEP), E. Corley (Allianz
GI) and A. Papiasse (BNP Paribas) :
- Banks (including asset management and processing entities): BNP Paribas, Unicredit Group / Pioneer AM /
Bank Austria Creditanstalt, Crédit Agricole, Fortis
- Asset managers: JPMorgan AM, Natixis Global Associates, Union Investment, HSBC IM, Allianz GI, DWS
-Processing service providers: Citigroup, Schroders, Société Générale, CACEIS, State Street,
- Stock exchanges: Euronext, Bourse de Luxembourg
2 Source : EFAMA statistics
3 Source FERI statistics and FERI 2006 European Fund Buyer Survey. A rising proportion of UCITS are also sold
outside the EU (around 15% of net sales)
4 Source: CRA study September 2006 - average production and distribution costs for equity funds in a sample of
EU markets . CRA estimated that total production and distribution costs amounted to ~150 bp on average in a
sample of EU countries. The study did not cover the whole value chain (eg trading costs are not included). We
were not able to verify the validity of these costs or the methodology used, but these results give an indication of
the breakdown of costs.
Asset management costs comprise: cash management, research, asset allocation, operational asset
management and dealing decisions. Processing and administration costs cover fund and client administration,
regulatory compliance of the fund and management company overheads and systems. Distribution and marketing
costs cover new product development, compensation to distributors, documentation, promotional activity…
Tags : UCITS Directive,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Automation,
Standardisation,
Type : Executive summary
- Open ended real estate funds (1)
-
-
|
AIFM
|
pdf
|
141.32 Ko
|
07-04-2010 |
-
Proposals regarding proportionality principles and the obligations of the depositary in the AIFM Directive
These proposals for adjustments to the Gauzès report on the AIFM Directive have been drafted by Eurofi with the input of a group of representative asset managers, custodians, valuators, prime brokers and insurance groups operating in the EU. Their objectives are to better take into account certain operational constraints and improve the allocation of responsibilities in the requirements of the Directive while maintaining its coherence and initial objectives.
The following players contributed to this initiative: Amundi Asset Management (formerly Crédit Agricole AM), AXA Investment Managers, The Bank of New York Mellon, BNP Paribas Investment Partners and Securities Services, CACEIS, Citi, Deutsche Bank, Fidelity International, Goldman Sachs, JP Morgan, Hedge Fund Standard Board (HFSB), MidEuropa, Pioneer, Prudential, Société Générale and Union Investment.
Tags : Non harmonised funds,
Open ended real estate funds,
Depositaries,
Hedge funds,
Private equity funds,
Type : Compte-rendu
- Management company (2)
-
-
|
EUROFI PRIORITIES FOR ECOFIN
|
pdf
|
115.97 Ko
|
10-09-2008 |
-
Eurofi, the dedicated think-tank for
the integration of financial services
in Europe, is organizing a conference
on September 11 and 12 to discuss
the proposals put forward by the
financial industry at the ECOFIN, set
against a global crisis with leaders
facing new challenges.
This crisis shows that the supervision of cross-border financial groups must be
adapted in order to factor in the rapid spillover of risks, the internationalization
of their activities and the centralized organization of their financial management
and strategy.
That is why Eurofi is proposing a series of pragmatic measures to improve the
supervision of these groups and the prevention of crises, notably including:
- The establishment of colleges grouping the European supervisors concerned
together, which would be given a similar mandate in order to ensure identical
protection for all of the group’s European customers;
- A specific role entrusted to the supervisor from the home European country,
ensuring that decisions relating to capital requirements and the organization
of supervision can be taken quickly and effectively, and that information is
immediately made available to all the other supervisors;
- The mission entrusted to the European supervisor committees (CEBS and
CEIOPS), to facilitate the resolution of possible differences of views between
supervisors from a given college and check that the conditions for fair
competition between the financial institutions are brought about.
Tags : CEIOPS,
Occupational Pensions,
Solvency II directive,
Microcredit,
UCITS Directive,
Management company,
UCITS,
Cross-border fund processing,
Prudential rules,
Accounting rules,
CEBS,
Regulation,
Supervision,
Type : Event Report
-
|
UCITS Regulatory framework
|
pdf
|
122.45 Ko
|
10-09-2008 |
-
There is a strong agreement among industry stakeholders on the added value of the proposals made for reviewing the UCITS Directive (UCITS IV) ie streamlining of the notification process, fund mergers, pooling / master feeder techniques, Key
Three main conditions indeed need to be fulfilled for a MC to manage UCITS funds on a remote basis:
- UCITS funds receiving services from a MC based abroad must continue to be managed and administered by the MC in compliance with the relevant rules of the UCITS domicile
- A clear definition of the respective responsibilities of the Fund regulator and of the MC regulator must be possible as well as cooperation mechanisms between regulators and interfaces between regulators, the MC and the depositary
-The conditions required for passporting MC collective portfolio services should generate sufficient economic benefits and not lead to regressions in Member States (MSs) where administrative activities can be widely outsourced on a cross-border basis
The assessments conducted by the Eurofi working group show that there are no major technical obstacles at present for MCs to fulfill these conditions on a remote basis with modern communication means. Most administrative activities involve data processing that can be operationally conducted cross-border. In addition initial proposals were made to define a framework of responsibilities ensuring that investor protection is safeguarded in this context. These principles could be defined at Level I of the Directive and further detailed at Level II:
-The current responsibilities of the Management Company and the Depositary should remain unchanged
- Supervisory responsibilities should be allocated between the Fund regulator and the Management Company regulator with leadership given to the Fund regulator for matters regarding the Fund
-A framework should be defined for cooperation, arbitration and escalation mechanisms between supervisors, applicable to the authorization process and to the on-going monitoring of the fund3.
But a detailed operational analysis of the way administrative activities are conducted on a day-to-day basis shows that the current differences in local laws across EU countries and specific local requirements that impact administrative activities of the fund – eg NAV calculation or fund accounting with differing splits of responsibilities between the MC and the depositary, differing methods, delegation rules etc... - make the remote performance of some services and the maintenance of expertise more complex in a cross-border environment.
3 This should be facilitated by the rules for supervisory cooperation described in the UCITS IV proposal
Investor Document and supervisory cooperation. On the other hand the Management Company Passport (MCP) concept has remained controversial particularly for contractual funds which are not legal entities (eg FCPs). The concept of the MCP already exists in the current UCITS III framework but is limited to corporate funds (eg SICAV which have a legal personality).
In July 2008 CESR was requested by the Commission to provide advice on remaining technical questions that need to be addressed when introducing a MCP.
Eurofi and a working group composed of industry representatives from all parts of the value chain, ie asset managers, depositaries and administrative agents operating in different EU financial centers1, assessed during the first semester of 2008 the practical conditions for UCITS funds to receive services from a remote management company (MC) based in a foreign EU member state. Our evaluation has particularly focused on the administrative activities performed by the MC2 which are at the heart of the current debate evolving around investor protection and economic issues.
Our overall conclusion at this stage is that implementing a MCP is a feasible and economically attractive objective to improve the efficiency of the EU funds industry but should be implemented with a staged approach.
We consider that conditions for Management Companies (MC) to operate cross-border could be significantly optimized in the short run with an adequate framework of responsibilities defined at Level I. MCs should in particular no longer be required to maintain a capitalized legal entity in the fund domicile to perform their activity which would lead to significant potential savings...
Tags : UCITS Directive,
Management company,
UCITS,
Type : Event Report
- TA (3)
-
-
|
Eurofi Report 5 Regulatory improvements Investment products
|
pdf
|
178.53 Ko
|
06-02-2009 |
-
The1current financial crisis and the
alleged Madoff fraud have revealed
risks and gaps in investment
products regulation and supervision
that need to be solved at the EU and
possibly global regulatory levels
with clarified and more harmonized
responsibilities and liabilities along
the fund value chain. Assessing
further harmonisation opportunities of the framework of non UCITS investment
products should also be a major objective for the Commission following a
clarification of the needs of retail and institutional investors.
1. Clarifying responsibilities along the fund value chain and
launching a harmonization effort across Europe are major
priorities:
Tags : UCITS Directive,
Asset Management,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Competing products,
Risk management,
Type : Event Report
-
|
Ucits Processing
|
pdf
|
131.43 Ko
|
11-09-2008 |
-
Substantial progress is
required in automation and
standardization of all crossborder
fund processing
activities - order execution and
settlement of transactions and
commissions handling - to face
up to increasing transaction
volumes.
Investment funds are indeed a booming market in Europe and the volume of
cross-border and third-party orders processed is developing strongly:
- At the end of 2006 e 7550 Bio were managed by approximately 31000
funds domiciled in the EU representing 34% of the worldwide fund industry
and an 80% increase since 2003.
- Cross-border funds (ie registered in 5 countries or more) represented
around 30% of net asset flows in 2005 and intra-EU cross-border fund
transactions are considered to represent around 20% of total transactions
in the EU.
- Third-party cross-border orders were evaluated to amount to around 27
Mio orders in 2006 for Luxembourg and Ireland – processed by TAs.
Although progress is being made through many industry-driven
initiatives, the level of automation and standardization of crossborder
fund processing still needs to be optimized to improve
efficiency, scalability and risk management with rising volumes:
- At present around 50% of cross-border orders are automated, mainly
through relationships between large players and a progressive penetration
of processing hubs, both supported by the Swift network. Many small and
medium sized distributors in particular remain to be automated to reduce
average costs and risks1.
Tags : TA,
Cross-border fund processing,
Automation,
Standardisation,
Type : Event Report
-
|
Investment funds Executive summary
|
pdf
|
812.27 Ko
|
03-12-2007 |
-
Optimising cross-border distribution and processing of investment
funds in the EU
Eurofi conference: 4 December 2007
EU Parliament
Executive summary of the Eurofi initiative
1. Eurofi worked over the last 12 months with a representative group of fund industry
leaders covering the different steps of the value chain1, to make proposals for
improving cross-border fund distribution and processing in the EU:
UCITS funds are a booming market in Europe: 2
• At the end of 2006 €7550 billion were managed through investment funds domiciled
in the EU representing 34% of the worldwide fund industry. UCITS funds represented
79% of this total with €5900 billion managed through approximately 31000 funds.
• The market growth has been very strong for UCITS and sustained over the recent
years: +80% growth between 2003 vs 2006 and a two-fold increase since 1998.
Cross-border and third-party fund distribution is developing in the EU3:
• Cross-border funds (ie registered in 5 countries or more) represented around 30% of
net asset flows in 2005 and intra-EU cross-border fund transactions are considered
to represent around 20% of total transactions in the EU
• Major distributors evaluated that in 2006, 55% of their activity was third-party with
35% in foreign funds.
Many operational and legal obstacles limit at present the efficiency of UCITS cross-border
distribution and processing in the EU. These obstacles are becoming increasingly important
to address as cross-border and open architecture distribution develop. Solving these
inefficiencies could further enhance the competitiveness of the EU funds industry by
reducing complexity and eliminating certain operational risks and extra-costs.
The EU Commission has focused the proposals made in the White Paper on activities
related to regulatory compliance, management company overhead and asset management
which are considered to represent around 15% of total costs and on some components of
distribution (total distribution costs were evaluated to represent 60% of total costs)4.
1 The following institutions were part of the Eurofi working group co-chaired by W. Klinz (MEP), E. Corley (Allianz
GI) and A. Papiasse (BNP Paribas) :
- Banks (including asset management and processing entities): BNP Paribas, Unicredit Group / Pioneer AM /
Bank Austria Creditanstalt, Crédit Agricole, Fortis
- Asset managers: JPMorgan AM, Natixis Global Associates, Union Investment, HSBC IM, Allianz GI, DWS
-Processing service providers: Citigroup, Schroders, Société Générale, CACEIS, State Street,
- Stock exchanges: Euronext, Bourse de Luxembourg
2 Source : EFAMA statistics
3 Source FERI statistics and FERI 2006 European Fund Buyer Survey. A rising proportion of UCITS are also sold
outside the EU (around 15% of net sales)
4 Source: CRA study September 2006 - average production and distribution costs for equity funds in a sample of
EU markets . CRA estimated that total production and distribution costs amounted to ~150 bp on average in a
sample of EU countries. The study did not cover the whole value chain (eg trading costs are not included). We
were not able to verify the validity of these costs or the methodology used, but these results give an indication of
the breakdown of costs.
Asset management costs comprise: cash management, research, asset allocation, operational asset
management and dealing decisions. Processing and administration costs cover fund and client administration,
regulatory compliance of the fund and management company overheads and systems. Distribution and marketing
costs cover new product development, compensation to distributors, documentation, promotional activity…
Tags : UCITS Directive,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Automation,
Standardisation,
Type : Executive summary
- Depositaries (3)
-
-
|
AIFM
|
pdf
|
141.32 Ko
|
07-04-2010 |
-
Proposals regarding proportionality principles and the obligations of the depositary in the AIFM Directive
These proposals for adjustments to the Gauzès report on the AIFM Directive have been drafted by Eurofi with the input of a group of representative asset managers, custodians, valuators, prime brokers and insurance groups operating in the EU. Their objectives are to better take into account certain operational constraints and improve the allocation of responsibilities in the requirements of the Directive while maintaining its coherence and initial objectives.
The following players contributed to this initiative: Amundi Asset Management (formerly Crédit Agricole AM), AXA Investment Managers, The Bank of New York Mellon, BNP Paribas Investment Partners and Securities Services, CACEIS, Citi, Deutsche Bank, Fidelity International, Goldman Sachs, JP Morgan, Hedge Fund Standard Board (HFSB), MidEuropa, Pioneer, Prudential, Société Générale and Union Investment.
Tags : Non harmonised funds,
Open ended real estate funds,
Depositaries,
Hedge funds,
Private equity funds,
Type : Compte-rendu
-
|
Eurofi Report 5 Regulatory improvements Investment products
|
pdf
|
178.53 Ko
|
06-02-2009 |
-
The1current financial crisis and the
alleged Madoff fraud have revealed
risks and gaps in investment
products regulation and supervision
that need to be solved at the EU and
possibly global regulatory levels
with clarified and more harmonized
responsibilities and liabilities along
the fund value chain. Assessing
further harmonisation opportunities of the framework of non UCITS investment
products should also be a major objective for the Commission following a
clarification of the needs of retail and institutional investors.
1. Clarifying responsibilities along the fund value chain and
launching a harmonization effort across Europe are major
priorities:
Tags : UCITS Directive,
Asset Management,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Competing products,
Risk management,
Type : Event Report
-
|
Investment funds Executive summary
|
pdf
|
812.27 Ko
|
03-12-2007 |
-
Optimising cross-border distribution and processing of investment
funds in the EU
Eurofi conference: 4 December 2007
EU Parliament
Executive summary of the Eurofi initiative
1. Eurofi worked over the last 12 months with a representative group of fund industry
leaders covering the different steps of the value chain1, to make proposals for
improving cross-border fund distribution and processing in the EU:
UCITS funds are a booming market in Europe: 2
• At the end of 2006 €7550 billion were managed through investment funds domiciled
in the EU representing 34% of the worldwide fund industry. UCITS funds represented
79% of this total with €5900 billion managed through approximately 31000 funds.
• The market growth has been very strong for UCITS and sustained over the recent
years: +80% growth between 2003 vs 2006 and a two-fold increase since 1998.
Cross-border and third-party fund distribution is developing in the EU3:
• Cross-border funds (ie registered in 5 countries or more) represented around 30% of
net asset flows in 2005 and intra-EU cross-border fund transactions are considered
to represent around 20% of total transactions in the EU
• Major distributors evaluated that in 2006, 55% of their activity was third-party with
35% in foreign funds.
Many operational and legal obstacles limit at present the efficiency of UCITS cross-border
distribution and processing in the EU. These obstacles are becoming increasingly important
to address as cross-border and open architecture distribution develop. Solving these
inefficiencies could further enhance the competitiveness of the EU funds industry by
reducing complexity and eliminating certain operational risks and extra-costs.
The EU Commission has focused the proposals made in the White Paper on activities
related to regulatory compliance, management company overhead and asset management
which are considered to represent around 15% of total costs and on some components of
distribution (total distribution costs were evaluated to represent 60% of total costs)4.
1 The following institutions were part of the Eurofi working group co-chaired by W. Klinz (MEP), E. Corley (Allianz
GI) and A. Papiasse (BNP Paribas) :
- Banks (including asset management and processing entities): BNP Paribas, Unicredit Group / Pioneer AM /
Bank Austria Creditanstalt, Crédit Agricole, Fortis
- Asset managers: JPMorgan AM, Natixis Global Associates, Union Investment, HSBC IM, Allianz GI, DWS
-Processing service providers: Citigroup, Schroders, Société Générale, CACEIS, State Street,
- Stock exchanges: Euronext, Bourse de Luxembourg
2 Source : EFAMA statistics
3 Source FERI statistics and FERI 2006 European Fund Buyer Survey. A rising proportion of UCITS are also sold
outside the EU (around 15% of net sales)
4 Source: CRA study September 2006 - average production and distribution costs for equity funds in a sample of
EU markets . CRA estimated that total production and distribution costs amounted to ~150 bp on average in a
sample of EU countries. The study did not cover the whole value chain (eg trading costs are not included). We
were not able to verify the validity of these costs or the methodology used, but these results give an indication of
the breakdown of costs.
Asset management costs comprise: cash management, research, asset allocation, operational asset
management and dealing decisions. Processing and administration costs cover fund and client administration,
regulatory compliance of the fund and management company overheads and systems. Distribution and marketing
costs cover new product development, compensation to distributors, documentation, promotional activity…
Tags : UCITS Directive,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Automation,
Standardisation,
Type : Executive summary
- UCITS (7)
-
-
|
Eurofi Report 5 Regulatory improvements Investment products
|
pdf
|
178.53 Ko
|
06-02-2009 |
-
The1current financial crisis and the
alleged Madoff fraud have revealed
risks and gaps in investment
products regulation and supervision
that need to be solved at the EU and
possibly global regulatory levels
with clarified and more harmonized
responsibilities and liabilities along
the fund value chain. Assessing
further harmonisation opportunities of the framework of non UCITS investment
products should also be a major objective for the Commission following a
clarification of the needs of retail and institutional investors.
1. Clarifying responsibilities along the fund value chain and
launching a harmonization effort across Europe are major
priorities:
Tags : UCITS Directive,
Asset Management,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Competing products,
Risk management,
Type : Event Report
-
|
Session 05B EU Priorities for UCTS & Securities Infrastructures
|
pdf
|
169.35 Ko
|
09-11-2008 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [5B] - EU PRIORITIES
FOR INVESTMENT FUNDS
AND EU SECURITIES
INFRASTRUCTURES:
Evolution of the UCITS
regulatory framework,
remaining challenges for securities infrastructures
The Panel
Moderators: Piia-Noora Kauppi, MEP, Committee on Economic and
Monetary Affairs, European Parliament;
Wolf Klinz, MEP, Committee on Economic and Monetary
Affairs, European Parliament
Panellists: Marc Raynaud, Global Head of Mutual Fund Distribution,
BNP Paribas Investment Partners;
David Wright, Deputy Director General, DG Internal Market
and Services, European Commission
Carlo Comporti, Secretary General, Committee of European
Securities Regulators (CESR);
Gertrude Tumpel-Gugerell, Member of the Executive
Board, European Central Bank (ECB);
Alain Closier, Global Head of Securities Services, Société
Générale;
The Debate
The non-harmonised market was growing considerably faster than
harmonised funds, commented Wolf Klinz, MEP, Committee on Economic
and Monetary Affairs, European Parliament, the moderator, opening the
debate. UCITS funds were set up for the retail investor and yet a quarter
of them were being sold to institutions. This suggested the need for more
instruments to be eligible for inclusion, he said.
In addition, the brand had proved successful in places such as the Far East
and Latin America, but competition within the European fund industry was
hampering efforts to expand the brand even further. “With problems such
as manual processing, we are unable to exploit economies of scale,” argued
Mr Klinz.
Tags : Investment services and regulated markets (MiFID),
Non harmonised funds,
UCITS,
Competing products,
Custody,
T2S,
Collateral,
Code of conduct,
Consolidation,
Type : Event Report
-
|
EUROFI PRIORITIES FOR ECOFIN
|
pdf
|
115.97 Ko
|
10-09-2008 |
-
Eurofi, the dedicated think-tank for
the integration of financial services
in Europe, is organizing a conference
on September 11 and 12 to discuss
the proposals put forward by the
financial industry at the ECOFIN, set
against a global crisis with leaders
facing new challenges.
This crisis shows that the supervision of cross-border financial groups must be
adapted in order to factor in the rapid spillover of risks, the internationalization
of their activities and the centralized organization of their financial management
and strategy.
That is why Eurofi is proposing a series of pragmatic measures to improve the
supervision of these groups and the prevention of crises, notably including:
- The establishment of colleges grouping the European supervisors concerned
together, which would be given a similar mandate in order to ensure identical
protection for all of the group’s European customers;
- A specific role entrusted to the supervisor from the home European country,
ensuring that decisions relating to capital requirements and the organization
of supervision can be taken quickly and effectively, and that information is
immediately made available to all the other supervisors;
- The mission entrusted to the European supervisor committees (CEBS and
CEIOPS), to facilitate the resolution of possible differences of views between
supervisors from a given college and check that the conditions for fair
competition between the financial institutions are brought about.
Tags : CEIOPS,
Occupational Pensions,
Solvency II directive,
Microcredit,
UCITS Directive,
Management company,
UCITS,
Cross-border fund processing,
Prudential rules,
Accounting rules,
CEBS,
Regulation,
Supervision,
Type : Event Report
-
|
UCITS Regulatory framework
|
pdf
|
122.45 Ko
|
10-09-2008 |
-
There is a strong agreement among industry stakeholders on the added value of the proposals made for reviewing the UCITS Directive (UCITS IV) ie streamlining of the notification process, fund mergers, pooling / master feeder techniques, Key
Three main conditions indeed need to be fulfilled for a MC to manage UCITS funds on a remote basis:
- UCITS funds receiving services from a MC based abroad must continue to be managed and administered by the MC in compliance with the relevant rules of the UCITS domicile
- A clear definition of the respective responsibilities of the Fund regulator and of the MC regulator must be possible as well as cooperation mechanisms between regulators and interfaces between regulators, the MC and the depositary
-The conditions required for passporting MC collective portfolio services should generate sufficient economic benefits and not lead to regressions in Member States (MSs) where administrative activities can be widely outsourced on a cross-border basis
The assessments conducted by the Eurofi working group show that there are no major technical obstacles at present for MCs to fulfill these conditions on a remote basis with modern communication means. Most administrative activities involve data processing that can be operationally conducted cross-border. In addition initial proposals were made to define a framework of responsibilities ensuring that investor protection is safeguarded in this context. These principles could be defined at Level I of the Directive and further detailed at Level II:
-The current responsibilities of the Management Company and the Depositary should remain unchanged
- Supervisory responsibilities should be allocated between the Fund regulator and the Management Company regulator with leadership given to the Fund regulator for matters regarding the Fund
-A framework should be defined for cooperation, arbitration and escalation mechanisms between supervisors, applicable to the authorization process and to the on-going monitoring of the fund3.
But a detailed operational analysis of the way administrative activities are conducted on a day-to-day basis shows that the current differences in local laws across EU countries and specific local requirements that impact administrative activities of the fund – eg NAV calculation or fund accounting with differing splits of responsibilities between the MC and the depositary, differing methods, delegation rules etc... - make the remote performance of some services and the maintenance of expertise more complex in a cross-border environment.
3 This should be facilitated by the rules for supervisory cooperation described in the UCITS IV proposal
Investor Document and supervisory cooperation. On the other hand the Management Company Passport (MCP) concept has remained controversial particularly for contractual funds which are not legal entities (eg FCPs). The concept of the MCP already exists in the current UCITS III framework but is limited to corporate funds (eg SICAV which have a legal personality).
In July 2008 CESR was requested by the Commission to provide advice on remaining technical questions that need to be addressed when introducing a MCP.
Eurofi and a working group composed of industry representatives from all parts of the value chain, ie asset managers, depositaries and administrative agents operating in different EU financial centers1, assessed during the first semester of 2008 the practical conditions for UCITS funds to receive services from a remote management company (MC) based in a foreign EU member state. Our evaluation has particularly focused on the administrative activities performed by the MC2 which are at the heart of the current debate evolving around investor protection and economic issues.
Our overall conclusion at this stage is that implementing a MCP is a feasible and economically attractive objective to improve the efficiency of the EU funds industry but should be implemented with a staged approach.
We consider that conditions for Management Companies (MC) to operate cross-border could be significantly optimized in the short run with an adequate framework of responsibilities defined at Level I. MCs should in particular no longer be required to maintain a capitalized legal entity in the fund domicile to perform their activity which would lead to significant potential savings...
Tags : UCITS Directive,
Management company,
UCITS,
Type : Event Report
-
|
Session 01A Innovation in EU Funds
|
pdf
|
168.9 Ko
|
05-02-2009 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [1A] - TAKING INTO
ACCOUNT INNOVATION IN
THE EU INVESTMENT FUND
REGULATORY FRAMEWORK:
Keeping up with innovation
in secured conditions
through potential evolutions in the product or distribution
framework of investment funds.
The Panel
Moderator: Marc Truchet, Senior fellow consultant, Eurofi
Panellists: Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Alain Leclair, Chairman, French Asset Management
Association;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding AG, Chaiman, BVI;
Jean-Paul Mazoyer, General Management Committee
Member in Charge of Development, Crédit Agricole Asset
Management;
Lisa Rabbe, Managing Director, Goldman Sachs
International
Tags : UCITS Directive,
Private placement,
Non harmonised funds,
UCITS,
Competing products,
Hedge funds,
Type : Compte-rendu
-
|
Investment funds Innovation Executive Summary
|
pdf
|
119.8 Ko
|
11-09-2008 |
-
Financial innovation is constant
in the investment funds
market, driven by the need
for the industry to continue to
ensure differentiation and find
new sources of performance
and revenue and by investor
demand eg for new types
of products less correlated with the stock exchange. Producers
use different approaches to answer these needs: diversification of
asset (eg new geographies or industrial sectors), new investment
techniques or strategies (eg hedge funds with the objective to offer
“absolute return” regardless of market conditions), new product
concepts (eg guaranteed products or lifestyle funds for retail
investors).
Local regulatory product frameworks have been evolving over time
to accommodate these evolutions and needs. The EU regulatory
framework also needs to keep pace with these evolutions
to create a secure framework for the passportability of new
products across European countries and to create innovative
product labels that can be exported successfully out of
Europe. The UCITS Directive, which is the only existing European
product legislation for investment funds has evolved over time
despite the constraints of the legislative process, since the UCITS
directive was not drafted following the Lamfalussy principles. The
list of eligible assets allowed in the UCITS framework has been
expanded over time to keep track with financial innovation. But the
increasing volume of investment funds and investment products (eg
certificates, notes…) that do not fall under the UCITS label and the
high proportion of UCITS funds sold to institutional investors (25%
of AuM according to the EU Commission) illustrate the limits of the
present framework.
Tags : UCITS Directive,
UCITS,
Competing products,
Hedge funds,
Private equity funds,
Type : Executive summary
-
|
Investment funds Executive summary
|
pdf
|
812.27 Ko
|
03-12-2007 |
-
Optimising cross-border distribution and processing of investment
funds in the EU
Eurofi conference: 4 December 2007
EU Parliament
Executive summary of the Eurofi initiative
1. Eurofi worked over the last 12 months with a representative group of fund industry
leaders covering the different steps of the value chain1, to make proposals for
improving cross-border fund distribution and processing in the EU:
UCITS funds are a booming market in Europe: 2
• At the end of 2006 €7550 billion were managed through investment funds domiciled
in the EU representing 34% of the worldwide fund industry. UCITS funds represented
79% of this total with €5900 billion managed through approximately 31000 funds.
• The market growth has been very strong for UCITS and sustained over the recent
years: +80% growth between 2003 vs 2006 and a two-fold increase since 1998.
Cross-border and third-party fund distribution is developing in the EU3:
• Cross-border funds (ie registered in 5 countries or more) represented around 30% of
net asset flows in 2005 and intra-EU cross-border fund transactions are considered
to represent around 20% of total transactions in the EU
• Major distributors evaluated that in 2006, 55% of their activity was third-party with
35% in foreign funds.
Many operational and legal obstacles limit at present the efficiency of UCITS cross-border
distribution and processing in the EU. These obstacles are becoming increasingly important
to address as cross-border and open architecture distribution develop. Solving these
inefficiencies could further enhance the competitiveness of the EU funds industry by
reducing complexity and eliminating certain operational risks and extra-costs.
The EU Commission has focused the proposals made in the White Paper on activities
related to regulatory compliance, management company overhead and asset management
which are considered to represent around 15% of total costs and on some components of
distribution (total distribution costs were evaluated to represent 60% of total costs)4.
1 The following institutions were part of the Eurofi working group co-chaired by W. Klinz (MEP), E. Corley (Allianz
GI) and A. Papiasse (BNP Paribas) :
- Banks (including asset management and processing entities): BNP Paribas, Unicredit Group / Pioneer AM /
Bank Austria Creditanstalt, Crédit Agricole, Fortis
- Asset managers: JPMorgan AM, Natixis Global Associates, Union Investment, HSBC IM, Allianz GI, DWS
-Processing service providers: Citigroup, Schroders, Société Générale, CACEIS, State Street,
- Stock exchanges: Euronext, Bourse de Luxembourg
2 Source : EFAMA statistics
3 Source FERI statistics and FERI 2006 European Fund Buyer Survey. A rising proportion of UCITS are also sold
outside the EU (around 15% of net sales)
4 Source: CRA study September 2006 - average production and distribution costs for equity funds in a sample of
EU markets . CRA estimated that total production and distribution costs amounted to ~150 bp on average in a
sample of EU countries. The study did not cover the whole value chain (eg trading costs are not included). We
were not able to verify the validity of these costs or the methodology used, but these results give an indication of
the breakdown of costs.
Asset management costs comprise: cash management, research, asset allocation, operational asset
management and dealing decisions. Processing and administration costs cover fund and client administration,
regulatory compliance of the fund and management company overheads and systems. Distribution and marketing
costs cover new product development, compensation to distributors, documentation, promotional activity…
Tags : UCITS Directive,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Automation,
Standardisation,
Type : Executive summary
- Competing products (4)
-
-
|
Eurofi Report 5 Regulatory improvements Investment products
|
pdf
|
178.53 Ko
|
06-02-2009 |
-
The1current financial crisis and the
alleged Madoff fraud have revealed
risks and gaps in investment
products regulation and supervision
that need to be solved at the EU and
possibly global regulatory levels
with clarified and more harmonized
responsibilities and liabilities along
the fund value chain. Assessing
further harmonisation opportunities of the framework of non UCITS investment
products should also be a major objective for the Commission following a
clarification of the needs of retail and institutional investors.
1. Clarifying responsibilities along the fund value chain and
launching a harmonization effort across Europe are major
priorities:
Tags : UCITS Directive,
Asset Management,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Competing products,
Risk management,
Type : Event Report
-
|
Session 05B EU Priorities for UCTS & Securities Infrastructures
|
pdf
|
169.35 Ko
|
09-11-2008 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [5B] - EU PRIORITIES
FOR INVESTMENT FUNDS
AND EU SECURITIES
INFRASTRUCTURES:
Evolution of the UCITS
regulatory framework,
remaining challenges for securities infrastructures
The Panel
Moderators: Piia-Noora Kauppi, MEP, Committee on Economic and
Monetary Affairs, European Parliament;
Wolf Klinz, MEP, Committee on Economic and Monetary
Affairs, European Parliament
Panellists: Marc Raynaud, Global Head of Mutual Fund Distribution,
BNP Paribas Investment Partners;
David Wright, Deputy Director General, DG Internal Market
and Services, European Commission
Carlo Comporti, Secretary General, Committee of European
Securities Regulators (CESR);
Gertrude Tumpel-Gugerell, Member of the Executive
Board, European Central Bank (ECB);
Alain Closier, Global Head of Securities Services, Société
Générale;
The Debate
The non-harmonised market was growing considerably faster than
harmonised funds, commented Wolf Klinz, MEP, Committee on Economic
and Monetary Affairs, European Parliament, the moderator, opening the
debate. UCITS funds were set up for the retail investor and yet a quarter
of them were being sold to institutions. This suggested the need for more
instruments to be eligible for inclusion, he said.
In addition, the brand had proved successful in places such as the Far East
and Latin America, but competition within the European fund industry was
hampering efforts to expand the brand even further. “With problems such
as manual processing, we are unable to exploit economies of scale,” argued
Mr Klinz.
Tags : Investment services and regulated markets (MiFID),
Non harmonised funds,
UCITS,
Competing products,
Custody,
T2S,
Collateral,
Code of conduct,
Consolidation,
Type : Event Report
-
|
Session 01A Innovation in EU Funds
|
pdf
|
168.9 Ko
|
05-02-2009 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [1A] - TAKING INTO
ACCOUNT INNOVATION IN
THE EU INVESTMENT FUND
REGULATORY FRAMEWORK:
Keeping up with innovation
in secured conditions
through potential evolutions in the product or distribution
framework of investment funds.
The Panel
Moderator: Marc Truchet, Senior fellow consultant, Eurofi
Panellists: Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Alain Leclair, Chairman, French Asset Management
Association;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding AG, Chaiman, BVI;
Jean-Paul Mazoyer, General Management Committee
Member in Charge of Development, Crédit Agricole Asset
Management;
Lisa Rabbe, Managing Director, Goldman Sachs
International
Tags : UCITS Directive,
Private placement,
Non harmonised funds,
UCITS,
Competing products,
Hedge funds,
Type : Compte-rendu
-
|
Investment funds Innovation Executive Summary
|
pdf
|
119.8 Ko
|
11-09-2008 |
-
Financial innovation is constant
in the investment funds
market, driven by the need
for the industry to continue to
ensure differentiation and find
new sources of performance
and revenue and by investor
demand eg for new types
of products less correlated with the stock exchange. Producers
use different approaches to answer these needs: diversification of
asset (eg new geographies or industrial sectors), new investment
techniques or strategies (eg hedge funds with the objective to offer
“absolute return” regardless of market conditions), new product
concepts (eg guaranteed products or lifestyle funds for retail
investors).
Local regulatory product frameworks have been evolving over time
to accommodate these evolutions and needs. The EU regulatory
framework also needs to keep pace with these evolutions
to create a secure framework for the passportability of new
products across European countries and to create innovative
product labels that can be exported successfully out of
Europe. The UCITS Directive, which is the only existing European
product legislation for investment funds has evolved over time
despite the constraints of the legislative process, since the UCITS
directive was not drafted following the Lamfalussy principles. The
list of eligible assets allowed in the UCITS framework has been
expanded over time to keep track with financial innovation. But the
increasing volume of investment funds and investment products (eg
certificates, notes…) that do not fall under the UCITS label and the
high proportion of UCITS funds sold to institutional investors (25%
of AuM according to the EU Commission) illustrate the limits of the
present framework.
Tags : UCITS Directive,
UCITS,
Competing products,
Hedge funds,
Private equity funds,
Type : Executive summary
- Hedge funds (4)
-
-
|
AIFM
|
pdf
|
141.32 Ko
|
07-04-2010 |
-
Proposals regarding proportionality principles and the obligations of the depositary in the AIFM Directive
These proposals for adjustments to the Gauzès report on the AIFM Directive have been drafted by Eurofi with the input of a group of representative asset managers, custodians, valuators, prime brokers and insurance groups operating in the EU. Their objectives are to better take into account certain operational constraints and improve the allocation of responsibilities in the requirements of the Directive while maintaining its coherence and initial objectives.
The following players contributed to this initiative: Amundi Asset Management (formerly Crédit Agricole AM), AXA Investment Managers, The Bank of New York Mellon, BNP Paribas Investment Partners and Securities Services, CACEIS, Citi, Deutsche Bank, Fidelity International, Goldman Sachs, JP Morgan, Hedge Fund Standard Board (HFSB), MidEuropa, Pioneer, Prudential, Société Générale and Union Investment.
Tags : Non harmonised funds,
Open ended real estate funds,
Depositaries,
Hedge funds,
Private equity funds,
Type : Compte-rendu
-
|
Session 01A Innovation in EU Funds
|
pdf
|
168.9 Ko
|
05-02-2009 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [1A] - TAKING INTO
ACCOUNT INNOVATION IN
THE EU INVESTMENT FUND
REGULATORY FRAMEWORK:
Keeping up with innovation
in secured conditions
through potential evolutions in the product or distribution
framework of investment funds.
The Panel
Moderator: Marc Truchet, Senior fellow consultant, Eurofi
Panellists: Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Alain Leclair, Chairman, French Asset Management
Association;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding AG, Chaiman, BVI;
Jean-Paul Mazoyer, General Management Committee
Member in Charge of Development, Crédit Agricole Asset
Management;
Lisa Rabbe, Managing Director, Goldman Sachs
International
Tags : UCITS Directive,
Private placement,
Non harmonised funds,
UCITS,
Competing products,
Hedge funds,
Type : Compte-rendu
-
|
Session 06 Learning from the Financial Crisis
|
pdf
|
260.58 Ko
|
09-11-2008 |
-
Eurofi 2008 -
Thursday 11/09/08
Session [6] - LEARNING
FROM THE FINANCIAL
CRISIS: KEY DRIVERS
AND EU INSTITUTIONS
INITIATIVES for reducing
procyclical effects; For
an effective surveillance of off-balance sheet risks; For an
appropriate setting of the banks’ amount of prudential own
funds; For providing reliable information to investors (rating
agencies, market information…)
The Panel
Moderator: Jacques de Larosière, Co-President, Eurofi
Panellists: Joaquín Almunia, EU Commissioner for Economic and
Monetary Affairs
Fernando Teixeira dos Santos, Portuguese Minister of
State and for Finance
Dominique Hoenn, Senior Adviser, BNP Paribas
Daniel Daianu, MEP, Committee on Budgets, European
Parliament
Deven Sharma, President, Standard & Poor’s
Nout Wellink, Governor, De Nederlandsche Bank and
Chairman of the Basel Committee
Tommaso Padoa-Schioppa, Former Italian Minister of the
Economy and Finance
The Debate
Joaquín Almunia, EU Commissioner for Economic and Monetary Affairs
said the main question was how to restore stability in our economies after
more than one year of turmoil. “This turmoil has posed serious challenges
to the financial industry and our economies. The experience has been
instructive, but after more than one year of turbulence, we now have to
turn lessons into action.”
The European Union had not been passive. It acted quickly last autumn,
adopting a road map of policy actions covering transparency, valuations,
supervision and market function, including the regulatory system.
Tags : Procyclicality,
Transparency,
Rating agencies,
Hedge funds,
Prudential rules,
Crisis,
Type : Event Report
-
|
Investment funds Innovation Executive Summary
|
pdf
|
119.8 Ko
|
11-09-2008 |
-
Financial innovation is constant
in the investment funds
market, driven by the need
for the industry to continue to
ensure differentiation and find
new sources of performance
and revenue and by investor
demand eg for new types
of products less correlated with the stock exchange. Producers
use different approaches to answer these needs: diversification of
asset (eg new geographies or industrial sectors), new investment
techniques or strategies (eg hedge funds with the objective to offer
“absolute return” regardless of market conditions), new product
concepts (eg guaranteed products or lifestyle funds for retail
investors).
Local regulatory product frameworks have been evolving over time
to accommodate these evolutions and needs. The EU regulatory
framework also needs to keep pace with these evolutions
to create a secure framework for the passportability of new
products across European countries and to create innovative
product labels that can be exported successfully out of
Europe. The UCITS Directive, which is the only existing European
product legislation for investment funds has evolved over time
despite the constraints of the legislative process, since the UCITS
directive was not drafted following the Lamfalussy principles. The
list of eligible assets allowed in the UCITS framework has been
expanded over time to keep track with financial innovation. But the
increasing volume of investment funds and investment products (eg
certificates, notes…) that do not fall under the UCITS label and the
high proportion of UCITS funds sold to institutional investors (25%
of AuM according to the EU Commission) illustrate the limits of the
present framework.
Tags : UCITS Directive,
UCITS,
Competing products,
Hedge funds,
Private equity funds,
Type : Executive summary
- Private equity funds (2)
-
-
|
AIFM
|
pdf
|
141.32 Ko
|
07-04-2010 |
-
Proposals regarding proportionality principles and the obligations of the depositary in the AIFM Directive
These proposals for adjustments to the Gauzès report on the AIFM Directive have been drafted by Eurofi with the input of a group of representative asset managers, custodians, valuators, prime brokers and insurance groups operating in the EU. Their objectives are to better take into account certain operational constraints and improve the allocation of responsibilities in the requirements of the Directive while maintaining its coherence and initial objectives.
The following players contributed to this initiative: Amundi Asset Management (formerly Crédit Agricole AM), AXA Investment Managers, The Bank of New York Mellon, BNP Paribas Investment Partners and Securities Services, CACEIS, Citi, Deutsche Bank, Fidelity International, Goldman Sachs, JP Morgan, Hedge Fund Standard Board (HFSB), MidEuropa, Pioneer, Prudential, Société Générale and Union Investment.
Tags : Non harmonised funds,
Open ended real estate funds,
Depositaries,
Hedge funds,
Private equity funds,
Type : Compte-rendu
-
|
Investment funds Innovation Executive Summary
|
pdf
|
119.8 Ko
|
11-09-2008 |
-
Financial innovation is constant
in the investment funds
market, driven by the need
for the industry to continue to
ensure differentiation and find
new sources of performance
and revenue and by investor
demand eg for new types
of products less correlated with the stock exchange. Producers
use different approaches to answer these needs: diversification of
asset (eg new geographies or industrial sectors), new investment
techniques or strategies (eg hedge funds with the objective to offer
“absolute return” regardless of market conditions), new product
concepts (eg guaranteed products or lifestyle funds for retail
investors).
Local regulatory product frameworks have been evolving over time
to accommodate these evolutions and needs. The EU regulatory
framework also needs to keep pace with these evolutions
to create a secure framework for the passportability of new
products across European countries and to create innovative
product labels that can be exported successfully out of
Europe. The UCITS Directive, which is the only existing European
product legislation for investment funds has evolved over time
despite the constraints of the legislative process, since the UCITS
directive was not drafted following the Lamfalussy principles. The
list of eligible assets allowed in the UCITS framework has been
expanded over time to keep track with financial innovation. But the
increasing volume of investment funds and investment products (eg
certificates, notes…) that do not fall under the UCITS label and the
high proportion of UCITS funds sold to institutional investors (25%
of AuM according to the EU Commission) illustrate the limits of the
present framework.
Tags : UCITS Directive,
UCITS,
Competing products,
Hedge funds,
Private equity funds,
Type : Executive summary
- Cross-border fund processing (3)
-
-
|
Session 04B Cross-Border Fund Processing in the EU
|
pdf
|
199.59 Ko
|
09-11-2008 |
-
Eurofi 08 - Thursday
11/09/08: Session [4A]
IMPROVING CROSS-BORDER
FUND PROCESSING IN THE
EU: Towards an industry
roadmap for optimising
cross-border processing and
proposals for monitoring
the progress.
The Panel
Moderator: Wolf Klinz, MEP, Committee on Economic and Monetary
Affairs, European Parliament
Panellists: Ivan Nicora, Director, Head of Funds Department, Product
Management, Euroclear;
Marc Raynaud, Global Head of Mutual Fund Distribution,
BNP Paribas Investment Partners;
Josée-Lynda Denis, Vice-President, Global Fund Services,
The Bank of New York Mellon;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding;
Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Bruno Prigent, Head of Investors Securities Services,
Société Générale;
Dominique Valschaerts, Member of the Executive
Committee, Luxembourg Stock Exchange
The Debate
Wolf Klinz, MEP, Committee on Economic and Monetary Affairs,
European Parliament, prefaced the session by saying as a liberal he
preferred not to introduce any more regulation, but to let the industry
regulate itself. However, he acknowledged that little or no progress had
been made on fund processing over the previous year, despite working
groups at Efama and Eurofi having addressed the issue. “The fact is, 50
per cent of processing is still done manually, which is still too high,” Mr
Klinz said.
Tags : Cross-border fund processing,
Automation,
Standardisation,
Type : Event Report
-
|
Ucits Processing
|
pdf
|
131.43 Ko
|
11-09-2008 |
-
Substantial progress is
required in automation and
standardization of all crossborder
fund processing
activities - order execution and
settlement of transactions and
commissions handling - to face
up to increasing transaction
volumes.
Investment funds are indeed a booming market in Europe and the volume of
cross-border and third-party orders processed is developing strongly:
- At the end of 2006 e 7550 Bio were managed by approximately 31000
funds domiciled in the EU representing 34% of the worldwide fund industry
and an 80% increase since 2003.
- Cross-border funds (ie registered in 5 countries or more) represented
around 30% of net asset flows in 2005 and intra-EU cross-border fund
transactions are considered to represent around 20% of total transactions
in the EU.
- Third-party cross-border orders were evaluated to amount to around 27
Mio orders in 2006 for Luxembourg and Ireland – processed by TAs.
Although progress is being made through many industry-driven
initiatives, the level of automation and standardization of crossborder
fund processing still needs to be optimized to improve
efficiency, scalability and risk management with rising volumes:
- At present around 50% of cross-border orders are automated, mainly
through relationships between large players and a progressive penetration
of processing hubs, both supported by the Swift network. Many small and
medium sized distributors in particular remain to be automated to reduce
average costs and risks1.
Tags : TA,
Cross-border fund processing,
Automation,
Standardisation,
Type : Event Report
-
|
EUROFI PRIORITIES FOR ECOFIN
|
pdf
|
115.97 Ko
|
10-09-2008 |
-
Eurofi, the dedicated think-tank for
the integration of financial services
in Europe, is organizing a conference
on September 11 and 12 to discuss
the proposals put forward by the
financial industry at the ECOFIN, set
against a global crisis with leaders
facing new challenges.
This crisis shows that the supervision of cross-border financial groups must be
adapted in order to factor in the rapid spillover of risks, the internationalization
of their activities and the centralized organization of their financial management
and strategy.
That is why Eurofi is proposing a series of pragmatic measures to improve the
supervision of these groups and the prevention of crises, notably including:
- The establishment of colleges grouping the European supervisors concerned
together, which would be given a similar mandate in order to ensure identical
protection for all of the group’s European customers;
- A specific role entrusted to the supervisor from the home European country,
ensuring that decisions relating to capital requirements and the organization
of supervision can be taken quickly and effectively, and that information is
immediately made available to all the other supervisors;
- The mission entrusted to the European supervisor committees (CEBS and
CEIOPS), to facilitate the resolution of possible differences of views between
supervisors from a given college and check that the conditions for fair
competition between the financial institutions are brought about.
Tags : CEIOPS,
Occupational Pensions,
Solvency II directive,
Microcredit,
UCITS Directive,
Management company,
UCITS,
Cross-border fund processing,
Prudential rules,
Accounting rules,
CEBS,
Regulation,
Supervision,
Type : Event Report
- Automation (3)
-
-
|
Session 04B Cross-Border Fund Processing in the EU
|
pdf
|
199.59 Ko
|
09-11-2008 |
-
Eurofi 08 - Thursday
11/09/08: Session [4A]
IMPROVING CROSS-BORDER
FUND PROCESSING IN THE
EU: Towards an industry
roadmap for optimising
cross-border processing and
proposals for monitoring
the progress.
The Panel
Moderator: Wolf Klinz, MEP, Committee on Economic and Monetary
Affairs, European Parliament
Panellists: Ivan Nicora, Director, Head of Funds Department, Product
Management, Euroclear;
Marc Raynaud, Global Head of Mutual Fund Distribution,
BNP Paribas Investment Partners;
Josée-Lynda Denis, Vice-President, Global Fund Services,
The Bank of New York Mellon;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding;
Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Bruno Prigent, Head of Investors Securities Services,
Société Générale;
Dominique Valschaerts, Member of the Executive
Committee, Luxembourg Stock Exchange
The Debate
Wolf Klinz, MEP, Committee on Economic and Monetary Affairs,
European Parliament, prefaced the session by saying as a liberal he
preferred not to introduce any more regulation, but to let the industry
regulate itself. However, he acknowledged that little or no progress had
been made on fund processing over the previous year, despite working
groups at Efama and Eurofi having addressed the issue. “The fact is, 50
per cent of processing is still done manually, which is still too high,” Mr
Klinz said.
Tags : Cross-border fund processing,
Automation,
Standardisation,
Type : Event Report
-
|
Ucits Processing
|
pdf
|
131.43 Ko
|
11-09-2008 |
-
Substantial progress is
required in automation and
standardization of all crossborder
fund processing
activities - order execution and
settlement of transactions and
commissions handling - to face
up to increasing transaction
volumes.
Investment funds are indeed a booming market in Europe and the volume of
cross-border and third-party orders processed is developing strongly:
- At the end of 2006 e 7550 Bio were managed by approximately 31000
funds domiciled in the EU representing 34% of the worldwide fund industry
and an 80% increase since 2003.
- Cross-border funds (ie registered in 5 countries or more) represented
around 30% of net asset flows in 2005 and intra-EU cross-border fund
transactions are considered to represent around 20% of total transactions
in the EU.
- Third-party cross-border orders were evaluated to amount to around 27
Mio orders in 2006 for Luxembourg and Ireland – processed by TAs.
Although progress is being made through many industry-driven
initiatives, the level of automation and standardization of crossborder
fund processing still needs to be optimized to improve
efficiency, scalability and risk management with rising volumes:
- At present around 50% of cross-border orders are automated, mainly
through relationships between large players and a progressive penetration
of processing hubs, both supported by the Swift network. Many small and
medium sized distributors in particular remain to be automated to reduce
average costs and risks1.
Tags : TA,
Cross-border fund processing,
Automation,
Standardisation,
Type : Event Report
-
|
Investment funds Executive summary
|
pdf
|
812.27 Ko
|
03-12-2007 |
-
Optimising cross-border distribution and processing of investment
funds in the EU
Eurofi conference: 4 December 2007
EU Parliament
Executive summary of the Eurofi initiative
1. Eurofi worked over the last 12 months with a representative group of fund industry
leaders covering the different steps of the value chain1, to make proposals for
improving cross-border fund distribution and processing in the EU:
UCITS funds are a booming market in Europe: 2
• At the end of 2006 €7550 billion were managed through investment funds domiciled
in the EU representing 34% of the worldwide fund industry. UCITS funds represented
79% of this total with €5900 billion managed through approximately 31000 funds.
• The market growth has been very strong for UCITS and sustained over the recent
years: +80% growth between 2003 vs 2006 and a two-fold increase since 1998.
Cross-border and third-party fund distribution is developing in the EU3:
• Cross-border funds (ie registered in 5 countries or more) represented around 30% of
net asset flows in 2005 and intra-EU cross-border fund transactions are considered
to represent around 20% of total transactions in the EU
• Major distributors evaluated that in 2006, 55% of their activity was third-party with
35% in foreign funds.
Many operational and legal obstacles limit at present the efficiency of UCITS cross-border
distribution and processing in the EU. These obstacles are becoming increasingly important
to address as cross-border and open architecture distribution develop. Solving these
inefficiencies could further enhance the competitiveness of the EU funds industry by
reducing complexity and eliminating certain operational risks and extra-costs.
The EU Commission has focused the proposals made in the White Paper on activities
related to regulatory compliance, management company overhead and asset management
which are considered to represent around 15% of total costs and on some components of
distribution (total distribution costs were evaluated to represent 60% of total costs)4.
1 The following institutions were part of the Eurofi working group co-chaired by W. Klinz (MEP), E. Corley (Allianz
GI) and A. Papiasse (BNP Paribas) :
- Banks (including asset management and processing entities): BNP Paribas, Unicredit Group / Pioneer AM /
Bank Austria Creditanstalt, Crédit Agricole, Fortis
- Asset managers: JPMorgan AM, Natixis Global Associates, Union Investment, HSBC IM, Allianz GI, DWS
-Processing service providers: Citigroup, Schroders, Société Générale, CACEIS, State Street,
- Stock exchanges: Euronext, Bourse de Luxembourg
2 Source : EFAMA statistics
3 Source FERI statistics and FERI 2006 European Fund Buyer Survey. A rising proportion of UCITS are also sold
outside the EU (around 15% of net sales)
4 Source: CRA study September 2006 - average production and distribution costs for equity funds in a sample of
EU markets . CRA estimated that total production and distribution costs amounted to ~150 bp on average in a
sample of EU countries. The study did not cover the whole value chain (eg trading costs are not included). We
were not able to verify the validity of these costs or the methodology used, but these results give an indication of
the breakdown of costs.
Asset management costs comprise: cash management, research, asset allocation, operational asset
management and dealing decisions. Processing and administration costs cover fund and client administration,
regulatory compliance of the fund and management company overheads and systems. Distribution and marketing
costs cover new product development, compensation to distributors, documentation, promotional activity…
Tags : UCITS Directive,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Automation,
Standardisation,
Type : Executive summary
- Standardisation (3)
-
-
|
Session 04B Cross-Border Fund Processing in the EU
|
pdf
|
199.59 Ko
|
09-11-2008 |
-
Eurofi 08 - Thursday
11/09/08: Session [4A]
IMPROVING CROSS-BORDER
FUND PROCESSING IN THE
EU: Towards an industry
roadmap for optimising
cross-border processing and
proposals for monitoring
the progress.
The Panel
Moderator: Wolf Klinz, MEP, Committee on Economic and Monetary
Affairs, European Parliament
Panellists: Ivan Nicora, Director, Head of Funds Department, Product
Management, Euroclear;
Marc Raynaud, Global Head of Mutual Fund Distribution,
BNP Paribas Investment Partners;
Josée-Lynda Denis, Vice-President, Global Fund Services,
The Bank of New York Mellon;
Wolfgang Mansfeld, Member of the Executive Board,
Union Asset Management Holding;
Niall Bohan, Head of Unit, Asset Management, DG Internal
Market and Services, European Commission;
Bruno Prigent, Head of Investors Securities Services,
Société Générale;
Dominique Valschaerts, Member of the Executive
Committee, Luxembourg Stock Exchange
The Debate
Wolf Klinz, MEP, Committee on Economic and Monetary Affairs,
European Parliament, prefaced the session by saying as a liberal he
preferred not to introduce any more regulation, but to let the industry
regulate itself. However, he acknowledged that little or no progress had
been made on fund processing over the previous year, despite working
groups at Efama and Eurofi having addressed the issue. “The fact is, 50
per cent of processing is still done manually, which is still too high,” Mr
Klinz said.
Tags : Cross-border fund processing,
Automation,
Standardisation,
Type : Event Report
-
|
Ucits Processing
|
pdf
|
131.43 Ko
|
11-09-2008 |
-
Substantial progress is
required in automation and
standardization of all crossborder
fund processing
activities - order execution and
settlement of transactions and
commissions handling - to face
up to increasing transaction
volumes.
Investment funds are indeed a booming market in Europe and the volume of
cross-border and third-party orders processed is developing strongly:
- At the end of 2006 e 7550 Bio were managed by approximately 31000
funds domiciled in the EU representing 34% of the worldwide fund industry
and an 80% increase since 2003.
- Cross-border funds (ie registered in 5 countries or more) represented
around 30% of net asset flows in 2005 and intra-EU cross-border fund
transactions are considered to represent around 20% of total transactions
in the EU.
- Third-party cross-border orders were evaluated to amount to around 27
Mio orders in 2006 for Luxembourg and Ireland – processed by TAs.
Although progress is being made through many industry-driven
initiatives, the level of automation and standardization of crossborder
fund processing still needs to be optimized to improve
efficiency, scalability and risk management with rising volumes:
- At present around 50% of cross-border orders are automated, mainly
through relationships between large players and a progressive penetration
of processing hubs, both supported by the Swift network. Many small and
medium sized distributors in particular remain to be automated to reduce
average costs and risks1.
Tags : TA,
Cross-border fund processing,
Automation,
Standardisation,
Type : Event Report
-
|
Investment funds Executive summary
|
pdf
|
812.27 Ko
|
03-12-2007 |
-
Optimising cross-border distribution and processing of investment
funds in the EU
Eurofi conference: 4 December 2007
EU Parliament
Executive summary of the Eurofi initiative
1. Eurofi worked over the last 12 months with a representative group of fund industry
leaders covering the different steps of the value chain1, to make proposals for
improving cross-border fund distribution and processing in the EU:
UCITS funds are a booming market in Europe: 2
• At the end of 2006 €7550 billion were managed through investment funds domiciled
in the EU representing 34% of the worldwide fund industry. UCITS funds represented
79% of this total with €5900 billion managed through approximately 31000 funds.
• The market growth has been very strong for UCITS and sustained over the recent
years: +80% growth between 2003 vs 2006 and a two-fold increase since 1998.
Cross-border and third-party fund distribution is developing in the EU3:
• Cross-border funds (ie registered in 5 countries or more) represented around 30% of
net asset flows in 2005 and intra-EU cross-border fund transactions are considered
to represent around 20% of total transactions in the EU
• Major distributors evaluated that in 2006, 55% of their activity was third-party with
35% in foreign funds.
Many operational and legal obstacles limit at present the efficiency of UCITS cross-border
distribution and processing in the EU. These obstacles are becoming increasingly important
to address as cross-border and open architecture distribution develop. Solving these
inefficiencies could further enhance the competitiveness of the EU funds industry by
reducing complexity and eliminating certain operational risks and extra-costs.
The EU Commission has focused the proposals made in the White Paper on activities
related to regulatory compliance, management company overhead and asset management
which are considered to represent around 15% of total costs and on some components of
distribution (total distribution costs were evaluated to represent 60% of total costs)4.
1 The following institutions were part of the Eurofi working group co-chaired by W. Klinz (MEP), E. Corley (Allianz
GI) and A. Papiasse (BNP Paribas) :
- Banks (including asset management and processing entities): BNP Paribas, Unicredit Group / Pioneer AM /
Bank Austria Creditanstalt, Crédit Agricole, Fortis
- Asset managers: JPMorgan AM, Natixis Global Associates, Union Investment, HSBC IM, Allianz GI, DWS
-Processing service providers: Citigroup, Schroders, Société Générale, CACEIS, State Street,
- Stock exchanges: Euronext, Bourse de Luxembourg
2 Source : EFAMA statistics
3 Source FERI statistics and FERI 2006 European Fund Buyer Survey. A rising proportion of UCITS are also sold
outside the EU (around 15% of net sales)
4 Source: CRA study September 2006 - average production and distribution costs for equity funds in a sample of
EU markets . CRA estimated that total production and distribution costs amounted to ~150 bp on average in a
sample of EU countries. The study did not cover the whole value chain (eg trading costs are not included). We
were not able to verify the validity of these costs or the methodology used, but these results give an indication of
the breakdown of costs.
Asset management costs comprise: cash management, research, asset allocation, operational asset
management and dealing decisions. Processing and administration costs cover fund and client administration,
regulatory compliance of the fund and management company overheads and systems. Distribution and marketing
costs cover new product development, compensation to distributors, documentation, promotional activity…
Tags : UCITS Directive,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Automation,
Standardisation,
Type : Executive summary
- Risk management (1)
-
-
|
Eurofi Report 5 Regulatory improvements Investment products
|
pdf
|
178.53 Ko
|
06-02-2009 |
-
The1current financial crisis and the
alleged Madoff fraud have revealed
risks and gaps in investment
products regulation and supervision
that need to be solved at the EU and
possibly global regulatory levels
with clarified and more harmonized
responsibilities and liabilities along
the fund value chain. Assessing
further harmonisation opportunities of the framework of non UCITS investment
products should also be a major objective for the Commission following a
clarification of the needs of retail and institutional investors.
1. Clarifying responsibilities along the fund value chain and
launching a harmonization effort across Europe are major
priorities:
Tags : UCITS Directive,
Asset Management,
Non harmonised funds,
TA,
Depositaries,
UCITS,
Competing products,
Risk management,
Type : Event Report
|
|
|
|
|
Membership
Eurofi brings together financial institutions of different sizes and statutes: domestic and cross-border banks and insurance companies with different legal statutes, broker dealers, asset managers, market infrastructures... The members of Eurofi are companies based in the main EU countries as well as well as subsidiaries of US firms.
Eurofi works with all the representative stakeholders involved in a given subject to help them solve issues or identify new ideas and interact with EU political decision makers and legislators.
Financial cross-border supervision, the Solvency II Directive, the review of the UCITS Directive and the new Alternative Investment Fund Manager Directive, Accounting and Prudential rules to favour long term investment for example are major areas of focus of the work of Eurofi. The proposals made by Eurofi are presented to the main leaders of the EU authorities and discussed at the occasion of the Financial Forums organized by Eurofi"
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Contribution to the de Larosière's Group |
 |
 2009.05.24
Preventing future crises requires in particular:
- Enabling the identification and preventative treatment of systemic risks for financial players or activities,
- Improving the coordination of supervision for cross-border financial groups
- Ensuring more transparent operations on the markets,
- Clarifying responsibilities of investment fund players
- Factoring in the accounting and prudential requirements of long-term investment.
These are the objectives on which Eurofi has focused its proposals.
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