The European Fund and Asset Management Association has called for the introduction of a ‘digital passport’ to allow investors access to products across Europe.
EFAMA says there are a number of barriers to the asset management industry distributing funds through a single online platform across the EU, despite the demand.
These include the different marketing rules, varying definition and rules on advice and diversified pricing structures and the national registration requirements.
In its response to the European Commission’s Capital Markets Union mid-term review consultation, EFAMA says: “Electronic distribution often requires a local country website, which means further efforts that may not always be related to financial regulatory requirements (for instance, rules related to national privacy rules and data retention) and further resources to support that. For that reason, a more holistic/coordinated approach is necessary to come up with the right solutions.
“EFAMA considers that this is an issue to be tackled within the EU digital single market agenda. We would invite the Commission to consider in the long term the idea of a ‘digital passport’.
“A single saving solution that once completed and validated by a single provider would allow a consumer to open securities accounts or purchase other investment services – including Ucits – with more providers (even in different member states) and individually manage his/her digital account in a consolidated manner. This digitalization of savings solutions will necessarily be adapted to fit both execution-only products, as well as those requiring investment advice.”