The European Fund and Asset Management Association has set out its recommendations on the European Commission’s Market Integration & Supervision Package, arguing that the proposal should simplify cross-border activity and reporting rather than give the European Securities and Markets Authority a broader supervisory role over asset managers. EFAMA said the Commission’s proposal for ESMA to review large asset managers annually and potentially suspend cross-border activities would add complexity and legal uncertainty, while a separate parliamentary idea to give ESMA direct supervision of asset managers would be even more disruptive. Instead, it called for stronger supervisory convergence using ESMA’s existing powers and for a competitiveness mandate for ESMA in its non-supervisory work. The association supported measures to streamline cross-border fund distribution and harmonise Undertakings for Collective Investment in Transferable Securities rules, but said broader harmonisation of management company rules is largely unnecessary. It asked for an opt-in delegation derogation to apply across entire groups, including non-European Union entities, and for ESMA to be mandated to build an integrated fund reporting regime, remove duplicative reporting requirements and allow more realistic reporting timelines under UCITS and the Alternative Investment Fund Managers Directive. EFAMA also said any European Union passport for depositaries should come with stronger safeguards, backed the Commission’s proposed enhancements to the equity consolidated tape including venue attribution and five layers of pre-trade data, opposed a major redesign of Europe’s equity market structure, and called for the Distributed Ledger Technology Pilot Regime’s value thresholds to be removed.
European Fund and Asset Management Association2026-06-18
European Fund and Asset Management Association urges EU lawmakers to drop expanded ESMA supervision from market integration package
The European Fund and Asset Management Association has urged European Union co-legislators to revise the Market Integration & Supervision Package by rejecting proposals that would expand ESMA’s direct or quasi-direct supervision of asset managers. It instead backed targeted simplification, including integrated fund reporting, limited technical changes to cross-border fund rules and stronger safeguards for any depositary passport. EFAMA also supported keeping the Commission’s proposed consolidated tape enhancements and removing value thresholds from the DLT Pilot Regime.