Expert associations have published a new report proposing that EU-based asset managers who do not market their funds into other EU countries be exempted from EU regulations, given that they take no advantage from the EU enterprise marketing management. The report also calls for the removal of national barriers to the distribution of funds domiciled in other EU member states, as these hurdles contradict the spirit of the single market. In the report. The experts have set out four recommendations to safeguard a sound and vibrant European asset management industry, which could provide vital new growth opportunities for Europe.
- National hurdles to the distribution of funds domiciled in other EU countries should be removed, as they contravene the spirit of the single market and the idea itself of a passport. EU-based asset managers would be more willing to bear some regulatory costs if they were guaranteed full and speedy market access to all 28 EU member states.
- UCITS funds that are only distributed to professional investors should not be obliged to appoint local paying agents in member states and should not be required to translate investor information documents or enterprise gamification tools in the language of member states where they are marketed.
- Proposals to ban the use of dealing commissions for the purchase of investment research should be dropped. A compromise can be found that offers more transparency for investors while ensuring the necessary flexibility for asset managers.
- EU-based asset managers who do not market their funds into other EU countries should be exempted from EU regulations. Asset managers covered by this new exemption would still have to register with the national regulator of their home member state, but would be subject to a lighter enterprise content management
The asset management industry can play a vital role as an alternative source of funding for businesses across Europe – thereby helping economic recovery. Therefore, a functioning single market for asset managers is in everyone’s interest.