EFAMA publishes its annual report
04 July 2011
A large number of European and international regulatory initiatives unfolded, often as part of political agendas of G20 countries. In total, more than 26 regulatory initiatives were identified as having a material impact on the industry and needed to be prioritised in terms of action.
During 2010, EFAMA made significant progress against its 2009–2011 strategic plan, while the financial services industry continued to experience unprecedented changes. Over the course of the year it became ever more important for the asset management industry to strike the right balance between taking proactive steps towards EFAMA’s goals, and reacting to market changes. To move towards meeting its strategic plan priorities in the field of distribution and pension provision, EFAMA released a White Paper in March 2010. "Revisiting the landscape of European long-term savings – a call for action from the asset management industry" provided a road map for action and articulated clear steps to take over the next few years in order to put further investors at the heart of what EFAMA does, and to contribute to building long-term savings for the benefit and growth of the European economy.
In distribution, EFAMA has continued to push for a level playing field for the distribution of financial products across the European Union, and for giving investor protection initiatives more prominence. Many steps have been taken in this direction, including notably the launch of a study on UCITS total expense ratios and of distribution costs in Europe. Financial education has also remained a key topic, as has the strengthening of pan-European fund classification for investors' benefit.
In the field of pensions, EFAMA actively responded to the Green Paper "towards adequate, sustainable and safe European pension systems". They continued to raise awareness on the challenges facing long-term savings in Europe and the need for adequate solutions. In particular they supported the introduction of a personal retirement plan with consistent certification standards across Europe (OCERPs), as well as positioning UCITS as a building block for such solutions.
Alongside these proactive moves, the association has had to react to numerous regulatory initiatives, including continuing developments in UCITS regulation, the introduction of regulation for non-UCITS products through AIFMD, a new supervisory framework for financial services, increased regulation of financial markets and a new classification for money market funds (proposed by CESR and essentially based on EFAMA and IMMFA proposals). In all cases, EFAMA feels it is vital that the association continues to work closely with the relevant authorities on consultations, impact assessments and ex-post evaluations. To respond to these challenges, EFAMA took a number of decisive steps throughout the year to strengthen its organisational structure, resources, and governance, as well as its public recognition and awareness. Deeper relationships with other international associations (ICI, IIFA), and constructive dialogue with the European banking and insurance federations have also been an area of focus. All these efforts have significantly strengthened EFAMA's output, profile and supported its actions in this fast changing world.
Even with the work done so far, more remains to be done as EFAMA continues to strive to strengthen investor protection and ensure the capital markets function well in order to serve the real economy. This will mean continuing to engage forcefully with the European Parliament, the European Commission and local regulators with whom EFAMA has established close relationships. Also EFAMA feels it will be important for the industry to continue articulating what it stands for and its role as part of a thriving European financial services industry.
From an economic standpoint, last year saw a decisive recovery in the industry's assets under management. Investment funds' assets tumbled to almost €6 trillion in early 2009, but recovered to more than €8 billion by the end of 2010 (close to their peak of €8.2 billion in June 2007). In particular, there was an acceleration in the development of the UCITS cross-border market: almost 100 per cent of Europe's net flows into UCITS came from cross-border funds, which are sold across multiple jurisdictions. This was also accompanied by a strong shift towards long-term UCITS: total net sales of long-term UCITS reached €292 billion in 2010, up from about €95 billion in 2009. The year was also marked by further financial and actuarial stabilisation of Europe's funded pension systems.
Full annual report
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