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Asset Management framework

Context

Asset management has a key role to play in the further development of capital markets in Europe due to the diversification features of investment funds and the easy access that they provide to professional portfolio management. EU investment funds are moreover supported by the UCITS and AIFMD frameworks which have become references at the global level in terms of transparency and investor protection.

A strong growth of the EU investment fund sector has been observed since the 2008 financial crisis and on-going trends such as digitalisation and sustainable investment should drive further growth. However improvements are needed in terms of the competitiveness and the integration of the EU fund market that remains fragmented along national lines. In addition, although the sector has demonstrated resilience during the Covid crisis, liquidity risks remain a concern for certain categories of MMFs and certain open-ended funds such as those highly exposed to corporate debt and real estate assets.

A review of the AIFMD directive is underway aiming to better integrate the EU Alternative Investment Funds (AIFs) market, improve investor protection, better monitor the risks to financial stability posed by AIFs and further align AIF and UCITS rules. The ELTIF framework is also being examined in the context of the CMU action plan with the objective of making ELTIFs more attractive for retail investors and asset managers.

Concerning financial stability risks, a harmonisation of liquidity management tools (LMT) has been proposed in the context of the AIFMD review in order to facilitate the management of liquidity risks posed by open-ended AIFs. Different reforms of the MMF regulation are also being considered at the European and international levels.

Contributions to the policy debate

Extracted from the main Eurofi publications (Regulatory Updates, Views Magazines and Conference Summaries)

Public and private
sector views

ELTIF / AIFMD reviews - February 2022 new

Rodrigo Buenaventura - Spanish Securities and Exchange Commission | Michael McGrath - Department of Finance, Ireland | Stéphane Janin - AXA Investment Managers | Fabrice Remy - Capital Group

MMF liquidity risks: policy priorities - February 2022 new

Dietrich Domanski - Financial Stability Board | Jean-Paul Servais - Financial Services and Markets Authority, Belgium | Francesco Mazzaferro - European Systemic Risk Board | Gabriel Bernardino - Portuguese Securities Market Commission | Gerry Cross - Central Bank of Ireland | Dalia Blass - BlackRock | Dennis Gepp - Federated Hermes (UK) LLP

The role of the asset management industry in a sustainable, open and competitive Europe - February 2022 new

P. Thomson - J.P. Morgan Asset Management

Asset management trends and policy implications - September 2021

Gabriela Figueiredo Dias - Portuguese Securities Market Commission | Derville Rowland - Central Bank of Ireland | Jérôme Reboul - Autorité des Marchés Financiers | Sean Hagerty - Vanguard Asset Management, Ltd | Simon Redman - Invesco Real Estate

Addressing fund liquidity risks - September 2021

Robert Ophèle - Autorité des Marchés Financiers | Francesco Mazzaferro - ESRB Secretariat | Gerry Cross - Central Bank of Ireland | Simon Janin - Amundi | Dennis Gepp - Federated Hermes (UK) LLP | Omar Chanan - Capital Group

AIFMD and ELTIF reviews - April 2021

Gabriela Figueiredo Dias - Portuguese Securities Market Commission | Ugo Bassi - European Commission | Natasha Cazenave - Autorité des Marchés Financiers | Laurent Van Burik - Commission de Surveillance du Secteur Financier | Verena Ross - European Securities and Markets Authority | Thomas Schindler - Allianz Global Investors GmbH | Christian Edelmann - Oliver Wyman (UK)

Lessons from Covid on Non-Bank Financial Institution (NBFI) risks - April 2021

Robert Ophèle - Autorité des Marchés Financiers | Francesco Mazzaferro - European Systemic Risk Board | Nausicaa Delfas - Financial Conduct Authority | Luigi Federico Signorini - Banca d’Italia | Gerry Cross - Central Bank of Ireland | Joanna Cound - BlackRock | Denis Gepp - Federated Hermes – International | Timothy Cuddihy - The Depository Trust & Clearing Corporation