• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Regulation

EU regulations bring standardisation yet 'high level of complexity' may defeat purpose: study

EU regulations bring standardisation yet 'high level of complexity' may defeat purpose: study
  • James Baxter-Derrington
  • 01 June 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Investors across the EU support the principle of standardising investor information but believe the myriad regulations and directives "fall short" of harmonisation, creating a high level of complexity that may defeat the intended purpose, according to a new study from the CFA Institute.

The report found that 69% of CFA charterholders who responded agree that the European Securities and Markets Authority (ESMA) should be granted more powers to oversee the cross-distribution of investment products across the EU, while 51% believe that since the introduction of MiFID II, greater care is given to product design.

Related articles

  • PRIIPs complexity remains despite uncertainty in the implementation deadline
  • Regulatory trends forcing maturation of alternative assets
  • Priips regime retains key deficiency argues Efama
  • European Commission confirms PRIIPs delay until 1 January 2018

However, 29% suggested that the relationship between manufacturers and distributors "presents flaws" regarding investor protection.

The headwinds facing the industry include questions of trust, increasing regulation, the value for money proposition, the rise of low-cost passive instruments and the impact of ever sophisticated technologies challenging established business models."

Over half (54%) think that while investors receive enough information, they are likely "struggling to understand" it due to its complexity, and 57% believe EU marketing rules are only "partially effective" due to inconsistent standards across jurisdictions, both geographically and between retail and professional clients.

There was general agreement among respondents that the controversial PRIIPs KID can be improved by "clarifying performance scenarios, reintegrating past performance and clarifying or simplifying the presentation of costs", but largely, PRIIPs and MiFID II are perceived to have had a positive impact on the quality of the relationship between manufacturer and distributor.

The study also found that the "situation of outsourcing" required further analysis as while most firms a performing operations relating to the production of the KID internally, this could change over time with automation.

Olivier Fines, head of advocacy EMEA at CFA Institute, said: "The headwinds facing the industry include questions of trust, increasing regulation, the value for money proposition, the rise of low-cost passive instruments and the impact of ever sophisticated technologies challenging established business models.

"While new product governance rules have investor protection principles at their core, there are clear variations in the quality and harmonisation of information provided to investors across Member States and between firms themselves.

"Further work needs to be done, by regulators and the industry at large, to ensure these frameworks deliver on their promises to encourage the cross-distribution of valuable investment solutions across the EU, a key goal of the Capital Markets Union which aims to resolve the long-term conundrum of pension funding and financing of structural economic projects via the channelling of individuals' savings."

Subscribe to International Investment's free, twice-daily, newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Regulation
  • ESMA
  • Regulation
  • European Securities and Markets Authority
  • CFA
  • CFA Institute
  • EU
  • MiFID II
  • PRIIPs
  • KID
  • Olivier Fines
  • Europe
  • European Union

More on Regulation

FCA hands £3.4m back to unauthorised investment scheme victims

  • Regulation
  • 24 February 2021
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions

  • Regulation
  • 23 February 2021
Jersey regulator fines three firms for breaching money laundering rules

  • Regulation
  • 17 February 2021
FCA partners with Jersey regulator to probe new Woodford venture

  • Regulation
  • 17 February 2021
CISI launches anti-money laundering partnership with Qatari regulator

  • Regulation
  • 16 February 2021
Back to Top

Most read

HSBC Singapore CEO to leave for Saudi British Bank
HSBC Singapore CEO to leave for Saudi British Bank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
J.P. Morgan Asset Management launches Global Income Sustainable Fund
J.P. Morgan Asset Management launches Global Income Sustainable Fund
Comment: Four key issues powering the renewable energy revolution
Comment: Four key issues powering the renewable energy revolution
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading