Investor disclosures should be made “digital by default”, said the UK’s main funds trade body.
The Investment Association (IA) announced a number of proposals aimed at European policymakers with reference to the European elections in June next year.
Overall, the IA said it wanted policymakers to make investing work better for individuals, businesses and the economy and deliver a more “modern, resilient and sustainable Europe”.
The IA said its 250 investment management members manage €3.2 trillion on behalf of European clients and provide €1 trillion to European businesses and projects in need of capital.
The ‘Making Investment Better for All’ report calls on EU institutions to “place individuals at the centre of policymaking”, which entails improving access to sustainable investments, promoting open and efficient capital markets, and supporting innovation and new technology.
Among a number of recommendations, the IA emphasised a role for artificial intelligence, which holds “substantial promise” for enhancing supervision within financial services and lays the foundation for the tokenisation of funds, which will open new avenues for innovation and investment.
Also, to tackle the long-term challenges of the adequacy and affordability of pensions, action must be taken now on pension dashboards and possible auto-enrolment programmes.
The IA also resurfaced the painful issue of market data costs, which are widely seen to be prohibitive for fund management firms. The IA wants a thorough review of the cost of market data to improve access to data and “enable more informed investment decisions”.
Chris Cummings, chief executive of the IA, said: “Today we’ve outlined our vision for how the EU institutions can harness investment and provide concrete solutions to ensure that investment works better for consumers and the economy, delivering a more resilient and sustainable Europe. We stand ready to work with policymakers and regulators across Europe to deliver on this agenda.”
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