Peter de Proft, Director General of EFAMA, commented: “Europe is facing an important challenge, which is also a unique opportunity. We very much welcome the fact that EU policymakers are embracing the opportunities that the asset management industry offers in terms of supporting sustainable economic growth and long-term financing.”
In its response, EFAMA also aims to underline what it considers to be the necessary conditions to make a Capital Markets Union successful - particularly highlighting the crucial role of promoting long-term savings and creating a single market for personal pensions. EFAMA thinks necessary to encourage European citizens to save more for retirement, and it is convinced that developing private pensions in Europe is crucial. The creation of a European personal pension product would offer the potential to increase the volume of retirement savings while channelling those savings to long-term investments across the EU.
European asset managers have long supported the ELTIF regulation as a concrete step towards unlocking capital and encouraging a shift towards investments in long-term projects. EFAMA believes that to make this a success story, important refinements, a right framework and appropriate incentives are necessary. In the context of building a capital markets union, ensuring appropriate calibrations in Level 2 must be a priority: appropriate and well calibrated level 2 measures in both MIFID II and Solvency II can encourage and promote, as they should, long-term investment.
EFAMA reiterates that it is crucial to ensure a regulatory level playing field and consistent regulation across sectors in the distribution of similar retail investment products. Retail investors must receive the same level of protection, whether these products are governed by MIFID II or IMD II.
Finally, EFAMA seeks to remind EU policymakers that the Financial Transactions Tax (FTT) represents a potential significant obstacle to the successful implementation of a Capital Markets Union. This proposal carries a significant risk which would cause distortions to the creation of an EU single market as it would relocate financial activities outside of the 11 participating Member States, or if applied in the 28 Member States, outside of the EU altogether. FTT would increase the costs for investors as it will render EU investment funds more expensive. It would also jeopardise long-term savings, growth and investment as it would channel investments to products not subject to FTT.
Peter de Proft, Director General of EFAMA, concluded: “Asset managers have an important role to play in the changing landscape of a more capital market based economy, and we stand ready to constructively engage with EU policymakers in the road towards financing growth in Europe.”
Full EFAMA response
Full press release
© EFAMA - European Fund and Asset Management Association
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