In its survey on Pension fund fees, LCP concluded that pensions funds are paying asset managers up to 70% more than 6 years ago: “The total asset management fee for a £50m active global equity mandate funded in January 2011, has, on average, risen 70% in the 6 years since our 2011 fee survey, from
Last year, BaFin identified transparency deficits in its investigation of closet indexers. It has now published a decision stating which information must be contained on the investment prospectuses of investment funds. Capital management companies have to explicitly state whether they are actively managed or only replicate an index. If the fund uses a reference value
Originally expected for January 2017, MiFID (Markets in financial instruments Directive) will enter into force in January 2018 and will have to be transposed into MSs’ national law by the 3 of July 2017. MiFID II will reinforce the current EU legislation on securities markets. For instance, the new directive will ensure that organized trading
On Monday 27 March, the ECON Committee of the European Parliament voted on an early non-objection of the delegated act for the implementation of the PRIIPs (Key Information Documents for Packaged Retail and Insurance-based products) which should enter into force in January 2018 (initially scheduled for January 2017). Sven Giegold, Member of the ECON Committee,
In 2012, Mario Draghi vowed “ to do whatever it takes to preserve the euro”. Five years later, it is not a question of whether a new kind of Outright Monetary Transactions programme could save the euro, but rather a question of democratic legitimacy. In its report “ Two sides of the same coin? Independence
On Wednesday 29 March at 12:30 pm, Sir Tim Barrow will present THE letter to the European Council informing the EU that the UK decided to “withdraw from the Union” (article 50 (1) TEU). Rumour has it though that the European Council is ready to react within 48 hours following the reception of the letter.
On the 23rd of March, as part of the FinTech conference, the European Commission has launched its Action Plan for Retail Services. This Action Plan sets out ways to provide European consumers with greater choice and better access to financial services across the EU. In this Action Plan, the Commission highlights the importance of technology
In 2013, the Financial Conduct Authority (the City’s Financial Watchdog) adopted a reform relating to fees charged to investors for fund management and financial advice. It decided to ban the “bundling of charges” and to stop fund groups from paying commission to advisers. The idea behind this reform is that since fund managers are no
On the 21st of March, the European Commission launched a public consultation on the Operations of the European Supervisory Authorities. Commissioner Dombrovskis declared that the Brexit has made the need to reform these authorities more urgent. Fears of forum shopping… The main concern is that following Brexit firms which are intending to leave London will
First proposed in 2014 by the European Commission, the revised Shareholders’ Rights Directive (2007/36/EC) was adopted on the 14 of March 2017 by the European Parliament. As pointed out by the European Commission in its press release, this revision is aimed at “ contributing to the long-term sustainability of the EU companies; enhance the efficiency