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30 March 2010

EFAMA report: revisiting the landscape of European long-term savings

This presents the views of 23 CEOs from some of the largest European asset management firms. It addresses the long-term savings challenges facing Europe, transparency, efficient pan-European distribution of retail financial products, and the improvement of business practices.

In a report published by the European Fund and Asset Management Association (EFAMA) 23 CEOs from some of the largest European asset management firms, pension funds, investment consultancies and investor associations, have set out their vision of what is required in practical steps to address the long-term savings challenge facing Europe, achieve transparent, efficient pan-European distribution of retail financial products and improve business practices and investor education.
The report - Revisiting the landscape of European long-term savings - A call for action from the asset management industry – outlines eight detailed recommendations to improve regulations for long-term savings, retail product distribution, financial education and business practices. The recommendations are intended to assist the industry, policy makers, and political representatives in ultimately achieving greater transparency, increased investor confidence and efficient savings solutions.
Welcoming the publication of the report, Jean-Baptiste de Franssu, President of EFAMA, said:
“Securing the financial future of Europe’s citizens is at the heart of EFAMA’s strategy for the coming years. Pension solutions in Europe, where demographic challenges are forcing governments to act, are fragmented and often inadequate and we in the industry have a key role to play in building an EU pensions framework in partnership with others who share the responsibility of safeguarding Europe’s economic future. We believe the recommendations of the report are a valuable distillation of progressive industry thinking that provide a strong basis for regaining the confidence of investors across Europe in savings and investment.
With the UCITS vehicle we already have one of the most robust underlying investment products for retirement plans, but the successful development of long-term savings and private retirement products also relies on the quality of distribution, educating investors about the optimum solutions, and on knowing client needs better.”
Long-term Savings Recommendations
The report highlights the urgency of Europe's long-term savings systems being unsustainable in their current form unless concerted action is taken to strengthen individual contributions across Europe.
1.    European governments should introduce compulsory long-term savings schemes organised in co-operation with employer and industry support.
2.    Increase the consumer-friendliness of long-term investments by introducing a personal retirement plan that has consistent certification standards across Europe.
3.    Give all product providers equal access to suitable and efficient Officially Certified European Retirement Plans (OCERPs) in order to foster competition for the best investor solutions.

© EFAMA - European Fund and Asset Management Association

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