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Change in outlook signalled at EC
18 September 2014
European Commission's era of command and control has peaked, according to asset management head Tilman Lueder
Tilman Lueder, who is in charge of the asset management
division at the European Commission, anticipated a "change in
outlook" for the new Commission.
"We are going to be a somewhat more focused and somewhat more
technical directorate. We want to create harmonised standards
so that there is more opportunity – this is not about
regulation for the sake of regulation," he
said, addressing a large audience of New City Initiative
Mr Lueder added that "what you see from the new Commission is
that the era of command and control [in terms of regulatory
backlash in the wake of the financial crisis of 2008] has
peaked. Ultimately, what the EC stands for is to integrate
markets and create opportunities."
He also threw his weight behind greater capital markets union.
He said: "Let’s be clear – capital
markets union is not the little brother of banking union, this
will not be a Eurozone thing. This is more about creating
greater cross-border investment flows" from which
Europe’s specialist asset managers could greatly
benefit by "conquering new markets" such as China.
Chinese investors "want smaller, specialist niche operators,
they want a slower and more gradual approach. The EC is
interested in learning what kind of strategy might niche fund
managers be able to offer."
Lueder expressed the need for widening the regulatory
debate to include smaller firms.
"It has therefore been a refreshing experience for me to learn
about smaller firms involved in active management strategies.
The entire debate in Brussels about asset management is focused
on cost disclosures – but we need to have a wide
On the issue of 'passporting’ funds within the EU
itself, Lueder said that "we need regulatory cooperation and we
are going to try to sort this out in practice. We need a joint
rulebook and the EC needs to ensure that there is a common
interpretation of the rulebook."
"It’s terrifically heartening to hear from Tilman
Lueder that his part of the European Commission is focused on
fostering true European capital markets integration, assisting
our members – and firms like them – to
compete better globally. However, we still need to ensure that
smaller firms are properly represented in the European body
politic, which is why we so welcome the dialogue with Dr
Lueder," said Dominic Johnson, founder and CEO of Somerset
Capital, and also chairman of NCI.