Session 1. Overcoming market fragmentation in the EU
Session 2. Business and regulatory challenges for the asset management industry
The growth of the asset management sector has directed policy-makers’ attention towards the industry’s business model and the various risks involved, including risks to the system, risks to individual institutions and risks faced by clients. As dealer/investment banks withdraw from fundamental areas of the financial system, such as securities borrowing/lending and the provision of market liquidity, the asset management industry is expected to respond and potentially even to change the way in which financial markets work. Asset managers are also facing unprecedented challenges in meeting investors' ever-rising expectations against a prolonged low-yield environment. At a systemic risk level, the understanding of the interconnectedness of asset management activities with the rest of the financial system is still developing. This may result in a revision of the current prudential framework.