In financial services, are regulation and growth compatible? Which role can asset management play for growth? Steven Maijoor, chairman of ESMA, responds to these questions in our new podcast.
U.S. asset managers are often baffled by securities rulemaking in the European Union. This new presentation from NICSA and ALFI provides a brief introduction to the process - and how it differs from the U.S. regulatory process.
Jean Guill, Director General of the CSSF (Commission de Surveillance du Secteur Financier), responds to our questions at the ALFI Spring conference 2015.
On 27 March 2015 ALFI submitted its response to the ESMA Discussion Paper on share classes of UCITS. Issues addressed in this paper relate to the definition of a share class, the different types of existing share classes in the various Member States of the EU and the possible approaches to developing a common understanding on the share classes that should be permitted.
Download the document here.
The Association of the Luxembourg Fund Industry (ALFI) today launches Understanding Investing, an online resource which aims to give people useful information they need about investing.
Commenting on the new initiative, Denise Voss, Chair of the ALFI Investor Forum, said: “It is increasingly important that people take responsibility for their long-term financial security, and the way to do that is to invest, whether directly or through funds and other financial products. This website gives people information to help them understand investing – why they should invest, what different types of investments there are, what the risks are and how to plan ahead.”
The website www.understandinginvesting.org starts with the basics and looks at how to start investing and what a financial adviser is. It helps people analyse what sort of investor they are, and outlines different styles of investment. It also explains the structure of funds and how they are regulated.
A series of easy-to-understand podcasts explain investment clearly. ALFI’s first investment podcasts, launched in 2014, cover questions such as How does a UCITS fund work? How can UCITS funds protect investors? and Should I save or invest? A further seven podcasts enable people to plan investments for their particular stage in life and - whether you are a student, young professional, mature adult or retiree - assess the cost of investing and look at what drives the performance of an investment.
Denise Voss concluded: “Having access to information and educational material about investing is essential if people are to build their long-term financial security. ALFI aims to help people understand investing and our new website provides simple and accessible information on a wide range of relevant topics.”
Assets under management in European responsible investment funds see compound annual growth of 25% between 2012 and 2014, according to the ALFI/KPMG 2015 European Responsible Investing Survey.
Commenting on the survey, Jane Wilkinson, partner and head of sustainability, KPMG Luxembourg, said: “We are pleased to see the results of this survey reflecting a growth and dynamism of this sector and that product innovation and a set of promising opportunities, for example the development of green and social bonds, have been identified. It is clear that asset managers today can no longer choose to ignore this market segment - they must be prepared to answer questions from their stakeholders around this topic. Failure to anticipate and act upon these questions is likely to result in chances missed and business lost.”
“Whilst responsible investing tends to be niche and institutional, it is ahead of the rest of the market in many ways,” concludes Anouk Agnes. “Responsible investing already focuses on simplicity, transparency, honesty and integrity. It should appeal to the investors of the future, who are already more environmentally and socially conscious. By 2030 responsible investing will move from being a niche product targeting mainly institutional investors to a mainstream investment product, and it’s up to fund managers to seize this opportunity and build their brands on firm “responsible” foundations.”
Download the survey here.
Download the executive summary here.
There is little advantage in waiting according to discussions at ALFI Leading Edge conference on 25th March 2015.
Luxembourg's regulator gets ahead of UCITS V
Due diligence and ongoing review
Segregation of assets and record keeping
Governance and conflicts of interest
Liquidity oversight and other controls
The new obligations of the ManCo
Next steps for depositaries
On 23 February 2015, ALFI responded to the consultation on cross-border regulation which was published in November 2014 by IOSCO.
The consultation report describes three cross-border regulatory tools:
- National treatment;
- Unilateral and mutual recognition; and
Moreover, the report outlines challenges from a regulator’s and stakeholders’ perspective, and lists suggestions on IOSCO’s role regarding cross-border issues.
Based on the feedback received, IOSCO’s task force on cross-border regulation is mandated to develop a cross-border regulatory toolkit, containing common terminology, of regulatory options for use by IOSCO members, and, where appropriate, to lay a foundation for the development of guidance on the coordinated use of the toolkit.
Download the document by clicking here.
On 17 February 2015, ALFI responded to the discussion paper on key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPs), which was published in November 2014 by the European Supervisory Authorities (ESAs).
The ESAs are mandated by the Regulation on Key Information Documents for Packaged Retail and Insurance-based Investment Products to develop draft Regulatory Technical Standards (RTS) on the content and presentation of the KIDs for PRIIPs. The aim of the KIDs is to provide EU retail investors with consumer-friendly information about investment products with the ultimate aim of improving transparency in the investment market. In order to ensure that all views and options are taken into consideration when developing the RTS, the ESAs were seeking stakeholders’ views on how these standardised KIDs should be developed. This discussion paper was a first step in the ESAs’ joint work on the broad issues to be considered in developing the RTS.