Half-day conferences
All investment firms are currently subject to the prudential requirements designed for banks. The European Commission’s proposal for a prudential framework devoted exclusively to investment firms will alter this regime. While the systemically important investment firms remain under the same prudential rules applicable to banks, smaller investment firms will be subject to less stringent requirements. The overarching objectives of the prudential framework are to ensure that the firms have sufficient funds to remain financially viable and avoid contagion to customers and the wider economy.
The use of central counterparties (CCPs) has increased markedly in recent years. The decision to shift from bilateral to central clearing of standardised over-the-counter derivatives concentrates risks in a couple of CCPs, which has potentially negative effects on the financial sector and the broader economy in the unlikely event that a CCP fails.
The financial sector is no stranger to innovation. Nevertheless, over the past few years, the exponential growth of FinTech companies suggests that more disruptive changes will be required in order to bring the financial system fully into the 21st century.
The European asset management industry has witnessed a solid growth in recent years, reaching an estimated €19 trillion in assets under management (AuM) at the end of 2014, divided almost equally between discretionary mandates (largely serving institutional investors) and investment funds.