LONDON (Reuters) – Europe’s leading asset management body has told the European Union that its plans for centralizing industry supervision could undermine the global appeal of EU-listed funds.
EFAMA is the latest to raise concerns that tinkering with the globally accepted regulatory practice of allowing asset managers in one country to run funds in another, known as delegation, could backfire on the bloc.
Funds - Centers - Luxembourg - Concerns - European
Major funds listing centers like Luxembourg have already raised concerns that the European Commission’s proposals for centralizing supervision will damage delegation of asset management.
The Commission proposed in September giving new supervisory powers to the bloc’s European Securities and Markets Authority or ESMA to ensure coordinated supervisory action in delegation, which is currently overseen by national watchdogs.
Delegation - Model - Investor - Choice - Ability
“It should however, be acknowledged, that delegation is already a reliable, well-functioning and tested model, central to ensuring investor choice with the ability of EU investors to access world leading investment expertise and the associated improved investor outcomes,” EFAMA said in a statement.
ESMA issued guidance in May on delegation for asset managers in London who want to continue running EU-listed funds after...
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