The Investment Association has called on regulators to improve on the rules relating to EU-based clients of UK investment managers.
The trade body represents 250 investment management firms which collectively manage €3.2trn (£2.7trn) on behalf of EU investors.
The IA’s views are detailed in a report titled ‘Making Investment Better for All.’ The stated aim is to encourage EU institutions to place individuals at the centre of policymaking, improve access to sustainable investment opportunities, promote open and efficient capital markets, support innovation and new technology, and foster greater international cooperation on regulatory standards.
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The specific recommendations include making investment more accessible by focusing on making disclosures ‘digital by default’, more concise, clear, and meaningful.
Second, institutions should do more to support innovation, including the adoption of artificial intelligence. The IA said this holds substantial promise for enhancing supervision within financial services.
The IA also called for ‘laying the foundation for the tokenisation of funds’, which will it says will open new avenues for innovation and investment.
Other points raised include tackling the long-term challenges on the adequacy and affordability of pensions by acting on pension dashboards and auto-enrolment programmes, as well as ‘bringing clarity and certainty’ to investors on sustainable investments.
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The IA said this will need to consider the sequencing of the EU’s sustainable finance agenda, recognise the complex and unique investor preferences, and provide greater international alignment on standards.
The trade body also called for EU regulators to conduct a thorough review of the cost of market data to improve access to data and enable more informed investment decisions.
Operationalising the EU-UK Joint Forum on financial services should also be a priority, according to the IA.
Chief executive of the Investment Association Chris Cummings said: “Investment managers play a vital role in helping millions of households across every EU member state provide for their financial futures. Our members manage €3.2trn for European investors and provide €1trn to European businesses and projects in need of capital.”
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