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In an interview with Financial News, EFAMA president Christian Dargnat said the wave of legislation that has flooded into the sector since 2008 has created a three tier market, gifting the upper hand to insurers and banks. He said: “With PRIPs, we are adopting something with major unintended consequences from insurance regulation [leading to] the fragmentation of the European insurance market". “We are going in the opposite director of what the regulators had intended. What has developed is a fragmentation of the European market.”
Dargnat said that the asset management sector is suffering something of a reputational crisis by accident because those in authority do not necessarily understand what it is that fund management firms do. As a result, he said, investment management companies are being lumbered with regulations from other, neighbouring sectors, because regulators and politicians believe asset management to be the same, or very similar.
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