Plans to channel European retirement plan assets and individuals' savings into productive investments, as well as to facilitate greater access to capital for the region's businesses, were broadly welcomed by the asset management industry.
The European Commission on March 19 published its Savings and Investments Union strategy, which aims to encourage greater investment in the region's capital markets. The commission said the plans can foster citizens' wealth, while boosting EU economic growth and competitiveness.
Among the proposals is a new EU Securitization Framework, aiming to facilitate standarization, lower issuance costs, and to enhance transparency and due diligence for providing finance to European businesses; and enhancement to Europe's supplementary, or private, retirement plans. Plans include to introduce automatic enrollment to such plans.
While the SIU strategy was broadly welcomed, industry participants aired concerns over its reach and detail — particularly with regards to the securitization framework.
"The alternative asset management industry supports the aims of the SIU,” said Rob Hailey, head of EMEA government affairs at the Managed Funds Association, in a news release. “Reducing fragmentation, boosting liquidity, and enhancing the securitization framework for investors will attract investment and strengthen EU capital markets. However, critical elements are missing. Simplifying transaction reporting requirements and right-sizing the short sale disclosure framework will make EU markets more efficient and globally competitive.”
The Alternative Investment Management Association is a longtime supporter of the SIU and its predecessor strategy, the Capital Markets Union, it said in a separate statement. “Today’s strategy announcement sets a high bar, and policymakers should maintain this ambition as they develop the SIU’s key components,” said Jack Inglis, CEO. “A crucial early step will be the upcoming proposal on securitization reform, which is essential for strengthening capital market investment and supporting lending to businesses."
The commission expects to publish a midterm review of the overall progress in implementing the recommendations of the SIU in the second quarter of 2027.
