The sophistication is evident and growing

The European association of the asset, the Efama management industry, today publishes a report on the landscape of the savings in the long term in Europe. The objective was to upwellings of the land, specifically twenty of Directors General of large European management companies, pension funds and an association of investors, with the support of McKinsey on the themes of long savings and distribution from the investor. This information, the members of the Council of the association released in 8 recommendations (see opposite). If all the countries represented in the Efama totally adhered to the approach, they are not all agree on all points. That does not prevent the members of the European association to engage on the path of reform. The report warns that European savings systems in the long term may last in their current form unless concerted action is undertaken to strengthen the individual contributions throughout Europe. It emits three specific recommendations to the distribution of the retail products to the attention of investors, distributors and suppliers of financial investment in retail (Packaged Retail Investment Product or IPPC). Jean-Baptiste de Franssu, the Efama President and CEO of Invesco Europe, book the "echoes" the motives of this investigation.

Who intend the recommendations of this report

First and foremost to the European Commissioner for the internal market and the European Parliament. The timing is thoughtful and important, since the publication of our report comes a few weeks after the appointment of Michel Barnier to the European Commission. We wanted to make date immediately with him. We seek to attract his attention on what should be the priorities of our industry in the long term. There are in fact of the themes which should be treated and have for the moment not retained enough attention. It is found that the European Commission has committed reflections on the issue of pensions on which she has planned the publication of a green paper in June. On the problem of distribution, here again, the calendar is favourable, since the revision of the MIF that should take place this year, or at the latest at the beginning of next year, addresses it. We we extend also to the European Parliament who won in recent years more power. We want to say to Parliament that they can rely on us. However, our message does not stop them. We are engaged in a series of "road shows" for the presentation of this report.

You want to say that the European AIFM directive, which deals with "hedge funds", does not deserve both emergency

We spend a crazy time on a less important issue as the necessary development of savings in the long term in particular with a view of retirement. Even if we are in agreement with the company approach, namely the creation of a European passport for non-Ucits funds. However, it is the policy agenda that led to legislate, more than the vain of the Commissioner of the time, Charlie McCreevy. All this noise often generated by only a few small groups of pressure is only a part of the non-Ucits funds which handle 350 billion euros, while the European UCITS industry represents more than 7,000 billion euros.

You insist on the development of long savings.

This is an essential theme. The problems of the ageing of the population and the impoverishment of the elderly are prio-priorities of the European Commission in its 2020 agenda. Today, it is true that the context calls for a revival of consumption. But President Nicolas Sarkozy has not wished that a new stock savings plan Vienna Fund French industry Therefore, we are not far from his concerns. However, we do not seek to obtain answers mono-pays. Thus, a single market for the mobility of workers may not be without a European harmonisation of financial retirement products.

Thus, you propose Orcep (Officially Certified European Retirement Plan).

This is true. We call for the creation of an envelope recognized by all Member States, passeportable from one country to another. The investor can put of IPPC ("Packaged Retail Investment Products"), as covers them the Brussels administration. It is life insurance, UCITS, structured products... Thus, a French framework called to work in Stockholm will keep its Orcep opened in France. Finished administrative hassles and the multiplication of the plans. On the other hand, he will have to adapt to the taxation of the country. But again, we are not des-cendus further down in the definition of the product.

Two crashes in a decade rocked the teaching that the action was the best placement in the long term. Investors will think twice before investing in shares.

You remember that a class of assets over a relatively short period for a long savings. The loss mainly occurred these past three years. In our report, we do not say to only invest in shares, which everyone knows also the risky nature. On the contrary, we call for greater flexibility in the supply of underlying: we are for a flexibility of choice and a "level playing field". Nevertheless, the European equity investment is crucial to maintain control over our fellow heritage in the years to come. In three years, British institutions have reduced their positions in British shares of 60 to 30. It is unfortunate. Therefore, it is important that all countries benefit from the same regulatory framework.

You recommend greater transparency. Or Ucits IV (UCITS) directive which is being transposition in national law is standby. Is - this insufficient

Non. UCITS are products more transparent in the IPPC, to the point that they export very well as Asian and South American investors make up 30 of annual flows. We simply say to the European Commission and the European Parliament: "do not stop your efforts! It's good for the client. "They should continue their work in horizontal alignment. White Paper on transparency and the commissions of the IPPC, is a minimum. Then, we advocate for a vertical approach: "Go better parse the string." We cannot continue as it is. There must be standards in practice both the production and distribution. Finally, and this is one of the major lessons of the crisis, we need to improve the control of risks. We have perhaps not shone on this point in the past. We must also solve the problems of classification of UCITS which differ from one country to another. In summary, we must take our responsibilities and work together with legislators and regulators.

The formation of networks you think it essential

Of course. Some financial advisors have not often been to even technically to understand the complexity of the products. The sophistication is evident and growing. In addition, client never knows if the Advisor of a network represents its interests or those of the institution. We found these past months lot of arbitrations between UCITS and banking products that benefited balance sheets of banks. The problem of the distribution is not sufficiently taken into account.

You are also the rules of conduct. Are there gaps

Non. It's just, and again, a question of harmonization. We must stop working elevator. Writing a code of conduct which we shall submit to the regulators, valid throughout Europe: single market capi-rates, coordinated response.