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Tackling long-term investment disincentives (accounting, prudential, regulatory issues, securitization…)

Day 2 Morning

Thursday 12 September

Room :

Fennia II - Roundtable

Speakers

Chair
Harald Waiglein - Director General for Economic Policy and Financial Markets, Federal Ministry of Finance, Austria & Member of the Board of Directors, ESM
Public Authorities
John Berrigan - Deputy Director-General, DG FISMA European Commission
Sébastien Raspiller - Assistant Secretary, French Treasury, Ministry of Economy and Finance, France
Märten Ross - Deputy Secretary General for Financial Policy and External Relations, Ministry of Finance, Estonia
Industry Representatives
Alexander Batchvarov - Head of International Structured Finance Research, Bank of America Merrill Lynch
Patrice Morot - Partner, PwC France
Cyril Roux - Group Chief Financial Officer, Groupama
Lauri Saraste - Director, ALM & Solvency, LocalTapiola Life

Objectives of the session

The session aims at describing accurately the long-term nature of the various business models within the financial sector (banks, insurance companies or fund distribution, …), finding out whether their regulatory framework are leading to unwanted evolutions of the role and behaviour of such financial intermediaries, in order to outline possible policy priorities taking into account the current monetary and economic context (low for long, low growth…).

Points of discussion

What are the main long-term investment needs in the EU (e.g. development of equity financing, notably SMEs, project financing notably regarding climate related transition, mortgages, etc.)? What are the main long-term investment gaps observed? What are the respective long-term financing contributions of the various financial institutions in the EU? How should they evolve?

What are the risk specificities faced by long-term investors? How are they addressed by existing regulatory frameworks? How to define a long-term investor? How to transform savers’ stable resources into long-term investment without imposing excessive constraints?

What are the main impediments faced by the various financial institution to hold long-term assets? What are the unnecessary limitations put on the capacity of the various financial institutions to transform stable resources into long-term investment?

Are existing regulations reinforcing the risk/long-term investment aversion of households (unnecessary liquidity option, too systematic association of equities with high level of risk, …)? What should be changed regarding consumer protection concerning long-term investment?

What is the current policy agenda and how should it evolve? How to explain the reduced regulatory/accounting standards… progresses achieved so far in this field? How are these regulatory and accounting issues evolving globally?