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Home Viewpoints

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When Investor Protection Becomes Protectionism

By Patrice Bergé-Vincent

June 14, 2016

The following ICI Viewpoints is an op-ed by Patrice Bergé-Vincent, managing director for Europe at ICI Global. Bergé-Vincent submitted the op-ed in response to the difficulties surrounding the cross-border distribution of funds in the European Union, and the European Commission’s consultation on how to address these difficulties. The op-ed originally ran in the French newspaper, Les Echos. English- and French-language versions are below.

Today, Europe is facing two related needs: to provide its citizens with efficient, lower-cost vehicles for savings and investment, and to bolster economic growth. One way to address both problems is to eliminate unjustified barriers to cross-border investment and investor choice.

The fund framework UCITS has proven so successful that it has become a global standard. But within Europe, national barriers exist that limit investor access to certain UCITS funds. Many countries have implemented inconsistent marketing rules, piling on extra national regulations (known as “goldplating”) while imposing Kafkaesque bureaucratic procedures and tax laws. All of this is a long way from the original idea of a unique European market for investment funds. In this way, UCITS funds, which are supposed to be European products, are not subject to the same fiscal treatment depending on their nationality. And anti- money laundering rules—which no fund manager contests—are interpreted differently by member states. All of these limit investor choice, increase investor costs, and block capital flows across Europe.

The recent consultation opened by the European Commission on cross-border fund distribution is therefore most welcome.* Brussels took a bold step in taking on these barriers. The time is now for the creation of a single, pan-European marketing regime for UCITS.

*Earlier this month, the European Commission launched a consultation to identify the main barriers of cross-border distribution of European investment funds (UCITS and alternative investment funds). The objective is "to enable funds to grow and become more efficient, to allocate capital more effectively across the European Union, and to compete on the national markets in order to encourage the creation of value and innovation."


L’Europe est aujourd’hui confrontée à deux besoins concomitants: assurer à ses citoyens l’accès à des véhicules d’épargne et d’investissement efficaces et moins chers et soutenir la croissance économique. L’un des moyens de contribuer à résoudre ces deux problèmes serait d’éliminer les barrières inutiles entravant l’investissement transfrontière et limitant le choix des investisseurs.

Le cadre réglementaire des OPCVM [organismes de placement collectif en valeurs mobilières] a rencontré un tel succès qu’il est devenu une reference mondiale. Pourtant, en Europe même, l’existence de barrières nationales limite l’accès des investisseurs à certains de ces OPCVM. Un veritable paradoxe! De nombreux pays ont mis en place des règles de commercialization incohérentes et empilé des réglementations nationales additionnelles (ce que les Anglo-Saxons désignent sous le terme de “goldplating”), tout en imposant des procédures bureaucratiques et des règles fiscales kafkaïennes. Tout cela est bien éloigné de l’idée initiale d’un marché unique européen des fonds d’investissement. Ainsi les OPCVM, supposes être des produits européens, ne sont pas soumis au même traitement fiscal selon leur nationalité. Et les règles de lutte contre le blanchiment d’argent—qu’aucun gestionnaire ne conteste–sont interprétées différemment par les Etats membres. Autant de facteurs qui limitent le choix des investisseurs, augmentent les coûts et freinent les flux de capitaux entre pays européens.

La consultation lancée dernièrement par la Commission européenne sur la distribution paneuropéenne des fonds* est donc grandement bienvenue. Bruxelles fait preuve d’audace en s’attaquant à ces barrières. Il est grand temps maintenant de créer un régime unique de commercialisation transfrontière des OPCVM en Europe.

*En début de mois, la Commission européenne a lancé une consultation destinée à identifier les principales barriers à la distribution transfrontalière des fonds d’investissement européens UCITS et AIF. Objectif : “Permettre aux fonds de croître et de devenir plus efficaces d’allouer le capital plus efficacement à travers l’Union européenne et de se faire concurrence sur les marches nationaux afin d’encourager la création de valeur et l’innovation.”

Patrice Bergé-Vincent is Managing Director, Europe, at ICI Global.

TOPICS: EuropeFinancial MarketsFund RegulationICI GlobalInternationalMutual FundTaxes


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