22 Mar 2010
In a report published by the European Fund and Asset Management Association, 23 CEOs from some of the largest European asset management firms, pension funds, investment consultancies and investor associations have set out their vision of what is required in practical steps to address the long-term savings challenge facing Europe, achieve transparent, efficient pan-European distribution of retail financial products and improve business practices and investor education.
The report - Revisiting the landscape of European long-term savings - A call for action from the asset management industry – outlines eight detailed recommendations to improve regulations for long-term savings, retail product distribution, financial education and business practices. The recommendations are intended to assist the industry, policy makers, and political representatives in ultimately achieving greater transparency, increased investor confidence and efficient savings solutions.
The report highlights the urgency of Europe's long-term savings systems being unsustainable in their current form unless concerted action is taken to strengthen individual contributions across Europe.
1. European governments should introduce compulsory long-term savings schemes organised in co-operation with employer and industry support.
2. Increase the consumer-friendliness of long-term investments by introducing a personal retirement plan that has consistent certification standards across Europe.
3. Give all product providers equal access to suitable and efficient Officially Certified European Retirement Plans in order to foster competition for the best investor solutions.
The findings of the report draw attention to the need to address how individual's investment decisions are structured and regulated in the wake of post-financial crisis volatility in asset flows. The report makes three recommendations specific to retail product distribution and addresses these to investors, distributors and Packaged Retail Investment Product providers.
1. Ensure harmonisation of distribution standards for PRIPs across product categories.
2. Improve the quality and transparency of activities at the point of sale.
3. Promoting further confidence in UCITS as a trustworthy investment vehicle.
In addition to the recommendations for long-term savings and retail product distribution, the contributors to the report called for the promotion of financial literacy and competence of individual investors and financial advisers; and the setting of high aspirations across the industry for better business conduct and performance.
The report - Revisiting the landscape of European long-term savings - A call for action from the asset management industry – outlines eight detailed recommendations to improve regulations for long-term savings, retail product distribution, financial education and business practices. The recommendations are intended to assist the industry, policy makers, and political representatives in ultimately achieving greater transparency, increased investor confidence and efficient savings solutions.
Welcoming the publication of the report, Jean-Baptiste de Franssu, President of EFAMA, said: “Securing the financial future of Europe’s citizens is at the heart of EFAMA’s strategy for the coming years. We in the industry have a key role to play in building an EU pensions framework in partnership with others who share the responsibility of safeguarding Europe’s economic future. We believe the recommendations of the report are a valuable distillation of progressive industry thinking that provide a strong basis for regaining the confidence of investors across Europe.”
The report highlights the urgency of Europe's long-term savings systems being unsustainable in their current form unless concerted action is taken to strengthen individual contributions across Europe.
1. European governments should introduce compulsory long-term savings schemes organised in co-operation with employer and industry support.
2. Increase the consumer-friendliness of long-term investments by introducing a personal retirement plan that has consistent certification standards across Europe.
3. Give all product providers equal access to suitable and efficient Officially Certified European Retirement Plans in order to foster competition for the best investor solutions.
The findings of the report draw attention to the need to address how individual's investment decisions are structured and regulated in the wake of post-financial crisis volatility in asset flows. The report makes three recommendations specific to retail product distribution and addresses these to investors, distributors and Packaged Retail Investment Product providers.
1. Ensure harmonisation of distribution standards for PRIPs across product categories.
2. Improve the quality and transparency of activities at the point of sale.
3. Promoting further confidence in UCITS as a trustworthy investment vehicle.
In addition to the recommendations for long-term savings and retail product distribution, the contributors to the report called for the promotion of financial literacy and competence of individual investors and financial advisers; and the setting of high aspirations across the industry for better business conduct and performance.
