EU rules have so far failed to create a viable single market in asset management, costing consumers of financial products billions of euros in wasted opportunity, according go Thomas Balk, European president mutual funds at Fidelity International.
Speaking at the annual IMA conference in London, Balk has said the European market remained “fragmented” and “dominated by national structures”. Companies trying to do trade across borders “find barriers at almost every turn,” Balk says.
Promises of more proposals from Europe’s politicians on the issue would merely waste more time and cost customers more money, he adds.
Fidelity cites a study suggesting the EU wastes 5bn annually in lost efficiencies in the asset management industry, compared with the US mutual funds industry.
Reasons include the lack of a single regulatory regime, lack of competition, and inability to consolidate back office functions.
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