Milan, August 1, 2005

Transcription

1 Milan, August 1, 2005 Mr Alexander Shaub Director General DG Internal Market and Services European commission 107 Avenue de Corthenbergh 1049 Bruxelles Belgium Prot. n. 1032/05 Dear Mr Shaub, Assogestioni, the Italian Association of the Asset Management Industry, is very pleased to contribute with its comments to the discussion on the Green paper on Financial Services Policy ( ). Assogestioni represents one on the largest investment management industries in Europe, its membership covering all Italian asset managers and the majority of foreign managers operating in Italy. At the end of 2004, its 218 members managed total assets for more the euro 940 bn. and included fund and portfolio managers, pension funds, banks and insurance companies. The Italian market, with over10% of the total stock and almost 25% of net Cash Inflows relative to investment companies based in other European states, is a good example of the success of European legislation on financial services in opening up and integrating the European market. With reference to the specific issues raised in the consultation documents, we would like to submit the following comments:

2 1. Key political orientation With reference to the three high level objectives mentioned in the Green Paper, Assogestioni believes the main focus should be on the consolidation of existing legislation. We intend consolidation to mean at least 3 things: 1) to simplify/rationalize existing European Union legislation, eliminating overlaps and inconsistencies in order to create suitable conditions and proper basis for a correct transposition at national level 2) to ensure the establishment of a horizontal single market, meaning a level playing filed for all products for retail investors, be it funds, insurance products or structured products 3) to further develop the fine-tuning of legislation with a view to foster constant product and process innovation and enable the integration between collective and portfolio management. We believe it to be neither appropriate nor advisable to hinder or stop the process of innovation and the trend towards harmonization of regulation of financial services. Inconsistency and lack of harmonization at European level frustrate efforts at national level to correctly transpose legislation. Therefore, consolidation can neither be reduced to the adoption of regulation already included in the FSAP nor place all hopes in a good transposition. Such a minimalist approach is certainly not in the interest of the European consumer or of the industry; the European Commission would have to face its responsibility in front of the European citizens and the political institutions, should a stop in the all important innovation and harmonization of the legal framework occur. In this sense, we would also like to emphasize that simplification and regulatory consistency, which are the basis also for an effective enforcing activity, cannot be achieved purely by means of interpretation of existing regulation (so called soft law) but also by actions directly affecting norms, 2

3 including changes in the legislation, amending and integrating it where necessary. In the same way, while agreeing with the need to carry out a preliminary evaluation of new legislation, also on the basis of costs/benefits analysis, we deem it important not to run the risk of stopping the legislative process. We believe that the best guarantee for an efficient legislation is the continuing involvement of the industry in the legislative process though the participation of industry representatives in all the relevant regulatory bodies. In particular, we believe it urgent for the Commission to acknowledge the fundamental role of the investment management industry in the development of retirement provisions and, as a consequence, to grant industry representation in the CEIOPS. 2. Better regulation, transposition, enforcement and continuous evaluation Assogestioni agrees with the priorities given by the European Commission. In particular we share the focus on a fair and consistent implementation and enforcement of existing legislation. We however would like to insist on the concept that such results can be effectively achieved only after having simplified, rationalized and integrated the entire regulatory set up of the financial sector. 3. Financial regulation over period We would like to draw the attention of the Commission over three areas of financial regulation that we believe of particular relevance, listed here below in order of priority: Enabling Cross Border investment and competition In our opinion the efforts aimed at the removal of the barrier still existing at the distribution level, albeit commendable, are not sufficient to create the necessary conditions for a efficient, competitive market, open to cross border operations. We believe in fact that, beside removing cross border obstacles hindering competition among products of the same origin (i.e. asset management) the main focus should be on the need to remove regulatory asymmetries still affecting the offering of service and products coming from banks or 3

4 insurance companies: products which have similar characteristics - to the point of replaceability but to which very different rules apply. Actions to that effect would be decisive in increasing cross border activity at retail level, made it easier both by a perception of a deeper and more extensive protection and by a stronger and more open competition among operators from all sectors (asset management, banking, insurance) offering similar products and bearing similar regulatory and transparency costs. Finish remaining measures In order to achieve an efficient capital market, it is essential to complete the measures envisaged in the FSAP In this regard, the choice of the Commission not to complete the legislative measures of the Takeover Directive with Level 2 measures cannot be understood. Such decision, mentioned in the Green Paper without any supporting explanation, does not appear to be consistent with the often stated objective of achieving a regulation of financial markets allowing an actual European integration and lays the foundations for an extensive cross border activity. The need to harmonize also this aspect of regulation arises form the growth, at European level, of the number and size of financial operations carried out though public offering and exchange that are hindered by national administrative barriers directly affecting shareholders interests. We would therefore invite the Commission to reconsider its position in this area. Efficient and effective supervision As far as the so-called Financial Supervision in concerned, we share the analysis of the Commission aimed at promoting convergence in the action of supervisory authorities. As indicated in the Green Paper, such a convergence is undoubtedly important to better identify and manage the risks linked to the development and operational broadening of markets. Another equally important objective 4

5 should however be considered, i.e. the opportunity of directing the convergence of financial supervision towards an elimination or at least a reduction of administrative and supervisory barriers currently hindering cross border activity. Finally we would recommend the Commission to consider evaluating the possible of actual convergence of the supervisory powers into one supervisory authority which ultimately could the most effective way to an efficient and effective European level supervision 4. Possible targeted new initiatives Assogestioni appreciates the relevance granted to the subject matter of Asset Management, to which it has chosen to devote a dedicated Green Paper. The issues dealt with therein have long been subject of useful and extensive discussions between the industry and the relevant European Union authorities. We will therefore postpone in-depth analysis and comments on the matter until we submit our contribution to the dedicated consultation. In the meantime we would put forward some general comments. Contrary to the conclusion of the expert Group concerning securities and asset management, from which the Green Paper has drawn inspiration, not enough attention appears to have been given to the subject of innovation. However innovation is the only way in which UCITS can continue developing and growing in the world market as a modern, up to date product guaranteeing at the same time investor protection. With reference to the areas on which the Commission has concentrated its attention (Codification and possible simplification of existing rules on information requirements; Financial mediation; Bank Accounts), we would like to emphasize once again that the focus should be on the creation of a level playing field for all competing products, regardless their origin. With this in mind, we are ready to work with the Commission and the other European institutions to further discuss all issues related to distribution channels and financial mediation. However, we believe that first of all it will be necessary to undertake in-depth discussion regarding the convergence 5

6 between provisions of the MIFID and the other directives dealing with the insurance and with the banking sector. We remain at you disposal for any further discussion on the matter concerned. Yours sincerely Fabio Galli Director General 6