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1/ CMU remains as relevant as ever. But it needs rethinking at EU level and a strong proposition for member states, i.e. the importance of private capital to support their economic recovery and growth.
2/ The capacity of capital markets to enhance the resilience of our societies, especially when confronted with unprecedented shocks such as COVID-19, should be given more thorough consideration.
3/ European households need a more balanced, diversified and lifecycle adjusted asset allocation. This requires access to suitable products, affordable/unbiased investment advice and open distribution channels.
4/ Financial insecurity risks will become more widespread among many European households. Investors will also have to adapt to the lower-for-longer environment, with fewer options to generate consistent returns.
5/ The extent to which retail investors can easily gain exposure to equity (public or private markets) should be carefully analysed, i.e. identifying market and regulatory hurdles and promoting investment solutions.
6/ The feasibility of a fully horizontal regime in manufacturing, distribution and advice should be benchmarked against whether retail investors would benefit in practice from increased access, transparency and suitability.
7/ Asset managers will have to re-examine their organic growth in retail and/or institutional assets in a context of prolonged low interest-rate dynamics, increasing costs (research, regulatory, data) and fee pressure.
8/ Encouraging buy-and-hold behaviour by insurers should not be seen as the unique approach to investment; the capacity to actively rebalance portfolios over market/economic cycles is equally important.
9/ Pension plans should provide ‘good value for money’ by setting fair, affordable contribution levels and implementing adequate portfolio management in order deliver long-term returns to end-beneficiaries.
10/ Institutional investors will continue to go beyond traditional asset classes, with an increasing demand for alternatives, and rethink their mix of alpha-seeking, index-based as well factor-based strategies.
11/ Asset managers and institutional investors have a duty to act in the best interest of their clients, and therefore should be equipped to seize the opportunities and tackle the risks arising from ESG factors.
12/ Transparency, proportionality, aligned incentives between corporates and investors, and ultimately performance are crucial for mainstreaming sustainable finance going forward. @CEPS_thinktank
