From DUFAS, we welcome the European Commission's Market Integration and Supervision Package (MISP) as an important step towards a better functioning and more integrated European capital market. The package fits within the broader ambition to strengthen savings and investment in Europe and to allow private capital flows to better contribute to economic growth, innovation and strategic investments. For asset managers operating in multiple European member states, further market integration is of great importance. Although the industry formally operates within one single market, in practice managers still experience significant differences in national regulations, supervisory practices and administrative processes. This fragmentation leads to higher costs, longer lead times and unnecessary complexity. The MISP contains proposals that seek to remove these obstacles in a targeted way.
Less fragmentation in fund distribution and marketing
The proposal has many positive elements to simplify cross-border fund distribution. The further digitalization and harmonization of notification processes through, among other things, a central ESMA infrastructure can replace the current patchwork of national procedures with a more efficient and transparent system.
Reducing additional national requirements for marketing communications also contributes to a more level playing field. More uniformity in this area can shorten time-to-market and ensure that investors in different member states have easier access to a wider range of investment products.
Group structures and delegation: better fit with practice
An important part of the MISP is the introduction of a European group definition and a modified approach to intra-group activities for these groups. We are positive about the principle that intra-group activities are not considered delegation. This better reflects the reality of modern asset management groups, in which functions such as risk management, IT and research are often organized at group level.
At the same time, it is important that the chosen group definition adequately reflects existing market practices. Many managers are part of international groups that also include non-EU entities or pension funds. Too narrow a definition may in practice lead to additional operational requirements and higher costs, without contributing to better investor protection. A more realistic approach contributes to legal certainty and efficient group structures.
More choice and specialization through an EU depositary passport
Another positive development is the introduction of an EU depositary passport. This passporting regime can offer managers more flexibility in choosing a depositary that suits their fund structure and investment strategy, for example for specialized or innovative products. In addition, the passport may stimulate competition and specialization within the depositary market.
For successful implementation, however, it is important to take into account differences in national private law and insolvency rules. Clear allocations of responsibility and robust safeguards are essential to ensure legal certainty and continued investor protection.
European coordination of supervision
The MISP strengthens ESMA’s role in coordinating cross-border supervision. We endorse the importance of greater consistency and cooperation between supervisors, especially for parties operating in multiple member states. At the same time, it is important that new structures actually contribute to simplicity and efficiency, and do not lead to duplicate layers of supervision or additional costs for market participants.
Outlook
The Market Integration and Supervision Package brings clear opportunities to further reduce structural barriers in the European capital market. Successful implementation requires a careful balance between harmonization, proportionality and practical applicability. We will remain in active dialogue with European and national policymakers on this issue, with the goal of a well-functioning, integrated and internationally competitive European asset management industry.
