Simplifications needed to mobilise EU savings, boost investment, and foster greater integration
 

In advance of the European Commission’s Savings and Investments Union (SIU) communication, EFAMA has highlighted key areas that need to be addressed to help restore the EU’s competitiveness. As highlighted by the Letta and Draghi reports, the EU and Member States urgently need to act together to develop deeper and more integrated capital markets and address the significant savings and investments mismatch in the EU. Asset managers, as key allocators of capital, stand ready to play their part.
 

Our recommendations cover four main areas:
 

Mobilising EU savings more effectively - including substantially simplifying the investor journey, improving financial literacy, preserving access to professional advice, boosting retirement savings, utilizing tax incentives, establishing simple national investment savings accounts and reviewing the Pan-European Personal Pension Product (PEPP).
 

Making more investments available for EU companies – including promoting the use of ELTIFs 2.0 and loan originating AIFs, and revitalizing the European securitization market.
 

Fostering greater market integration and efficiency in capital markets – including reducing duplicative reporting, increasing EU regulatory consistency, delivering a reasonably priced and high-quality Consolidated Tape, addressing the issues of ever-increasing cost and reliability of market and ESG data, recognising the transformative power of DLT, and removing gold plating and tax barriers to EU cross-border investments. 
 

Prioritising greater supervisory convergence – including the exchange of supervisory data across authorities.
 

Vincent Ingham, EFAMA Director of Regulatory Policy, commented: “The EU stands at a crossroads, where the decisions we make today will impact our economic prosperity for years to come. There are clear regulatory changes and simplifications that policymakers can make to turn more savers into investors, provide more funding for EU businesses, and improve market efficiency and integration. Within an enabling regulatory environment, asset managers can play a powerful role in the financial well-being of EU citizens and the success of the European economy.”

- ENDS -
 

Note to editors:
 

Read our full position paper here.

For further information, please contact:

Hayley McEwen

Head of Communication & Membership Development