McCreevy tackles asset management complexity

TACKLING the complexity that frustrates asset management in Ireland, which is worth €342.3 billion to the economy, is the aim of the Asset Management White Paper.

This is according to European Commissioner Charlie McCreevy, who said an exposure draft will be presented for public consultation in March.

We would hope to issue the commission’s formal proposal in autumn 2007,” he said.

“In the White Paper we are proposing to replace the current snail’s-pace, costly, and bureaucratic notification procedure by a streamlined information exchange between regulators,” he said.

He said the paper’s steps will enhance the efficiency of the industry by facilitating fund mergers, asset pooling, and the passporting of different parts of the fund value chain across borders.

He warned many EU member states distribution costs account for over half of total costs of fund investing.

He said the time was not yet ripe to legislate on non-harmonised retail funds.

Mr McCreevy proposed to free up cross-border transactions between suitably qualified investors.

The broad framework is in place for integrated capital markets, for free movement of capital across borders, for a more integrated financial market infrastructure, and for a level playing field for the marketing of investment services across Europe, he said.

“The measures will provide a framework, not a straightjacket, to facilitate future innovation and where the industry signals and is clear — it wants further harmonization across the member states to facilitate easier pan-European placement,” he said.