Tackling long-term investment disincentives (accounting, prudential, regulatory issues, securitization…)
Day 2 Morning
Thursday 12 September
Fennia II - Roundtable
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?