For immediate release: Tuesday 4 July 2006

 
SINGLE EUROPEAN MARKET FOR ASSET MANAGEMENT - TIME FOR ACTION

The Investment Management Association believes that the Expert Group reports published today by the European Commission are a very important step towards cutting costs and enhancing the efficiency of the European asset management industry as well as increasing competition in the market. 

The report on increasing efficiencies encompasses all of the focused, realistically achievable steps required to enhance the single market which were identified in IMA’s 2003 report “Towards a Single European Market in Asset Management”. The simplification of the registration process, facilitating cross-border mergers of funds, the creation of a real passport for management companies and allowing funds to be pooled cross-border, would go a long way to achieving the significant economies of scale highlighted by the Association three years ago. 

The report on alternative investment funds is equally welcome, in particular the call to open up the markets for alternative strategies. Currently, there are very different approaches to these types of funds in different Member States and the report is likely to provoke very valuable discussion. 

Sheila Nicoll, Deputy Chief Executive of the IMA commented:

“The publication of today’s reports is an important step towards removing barriers to cross-border business and enhancing competition and choice in the European market. The Expert Groups have added flesh to the ideas highlighted in our 2003 report, in the form of concrete steps which should be taken to make them a reality.

The efficiency issues have been analysed thoroughly and the report confirms that there is overwhelming consensus on what needs to be done. Now is the time for action to make these proposals reality.”

 
-Ends-
 

For further information, please contact:
Helen Stephenson, Communications Officer, IMA             020 7831 0898
 
Out of hours contact:
Mona Patel, Head of Communications                            07834 089 332
 
Notes to Editors
1. In May 2003 IMA published “Towards a Single European Market in Asset Management”, an examination of the obstacles to greater competition in the provision of savings products by asset managers. A copy can be found here.
2. The objective of the Expert Working Group on Investment Fund Market Efficiency is to advise the Commission on cost-effective ways to support a more efficient organisation of different stages in the European fund value-chain. The Group provides technical, commercial and market analysis that serves as a basis for debate with Member States.
3. The Expert Group on Alternative Investment Funds documents obstacles to the smooth development of the hedge fund and private equity fund business on a cross-border basis and assesses whether there is any material advantage to trying to resolve the problems of EU regulatory fragmentation.