Dillon Eustace is one of Ireland’s leading law firms focusing on financial services, banking and capital markets, corporate and M&A, litigation and dispute resolution, insurance, real estate and taxation. Headquartered in Dublin, Ireland, the firm’s international practice has seen it establish offices in Tokyo (2000), New York (2009) and the Cayman Islands (2012).
On 19 March 2025, the European Commission published its
communication on its strategy for the EU's Savings and
Investments Union (Communication).
Against a backdrop of rising geopolitical tensions, major
investment needs and an economy caught in a low-growth cycle, the
Communication outlines the steps the European Commission will take
over the next two years, to revive the EU economy and increase EU
competitiveness. Interestingly, it also confirms that it will
establish specific reporting channels in Quarter 2 of this year to
allow market participants to detail barriers they have experienced
within the single market which will inform the various proposals
put forward by it.
In this briefing we outline some of the key takeaways from the
Communication for the EU asset management industry.
It is worth noting that any legislative proposal put forward by
the European Commission must then be considered by the European
Parliament and the Council of the European Union before it becomes
law. The timeframes outlined below relate to when the Commission
will publish such proposals which will then need to be considered
by and negotiated with the co-legislators.
Issues identified by the
Commission
Proposal put forward by the
Commission
Timing proposed by Commission
Poor retail participation in EU financial markets which impacts
on (i) the ability for retail investors to benefit from higher
returns on their savings and (ii) economic growth, job creation and
the range of financing available to EU companies.
The creation and publication of a European blueprint for retail
savings and investment accounts or products as well as a
recommendation on the tax treatment of such accounts. This proposal
may look to leverage from the success of retail investor saving
plans in jurisdictions such as Germany over recent years
Quarter 3 2025
Asset management groups with significant cross-border activities
are subject to diverging application of EU law by national
competent authorities (NCAs), resulting in unnecessary
administrative burdens and barriers to cross-border business
activities.
The transfer of certain (unidentified) supervisory tasks from
NCAs to EU-level supervision. The publication of measures to
strengthen supervisory convergence tools to achieve more integrated
and harmonised supervision of those tasks which continue to be
monitored at NCA level.
Quarter 4 2025
Asset managers operating as a group structure across multiple
Member States are required to allocate similar resources to each
entity, resulting in unnecessary duplication of burdens and
costs.
The publication of measures to reduce operational barriers
affecting cross-border groups in order to simplify operations of
asset managers and ensure a more efficient access and servicing of
clients.
Quarter 4 2025
National barriers, divergent practices and gold-plating has
impeded the cross-border distribution of funds within the EU,
resulting in reduced investment opportunities and increased costs
for investors.
The publication of legislation to remove barriers to the
distribution of EU-authorised funds throughout the EU
Quarter 4 2025
The EU Securitisation Framework should be further simplified to
stimulate private funding to EU companies and to further boost
competitiveness.
The publication of proposals on simplifying due diligence
requirements currently imposed on institutional investors (such as
fund management companies), transparency requirements and adjusting
prudential requirements for banks and insurers.
Quarter 2 2025
EU venture capital and growth capital funds are unreliable
sources of financing for young EU companies, resulting in them
seeking late-stage growth capital from non-EU venture capital funds
or being acquired by non-EU companies before they scale.
The EuVECA label has not been widely used due to regulatory
limitations that affect its attractiveness and its positive impact
on local venture capital markets.
The publication of measures to boost secondary markets for
private capital and allow investors in private companies exit their
investments in startups.
Review and upgrade the EuVECA Regulation to make this label more
attractive, including by widening the scope of investable assets
and strategies.
Ensuring that EU listing rules are simple and minimise burdens
so as to make EU public markets more attractive.
Quarter 3 2026
Next steps
While it will only be possible to fully assess the likely impact
of the European Commission's proposals on the EU asset
management sector as and when they are published over the next two
years, the Communication does provide a clear indication of why and
how it proposes to reform and revitalise EU capital markets over
the coming years.
We would encourage those operating in the EU asset management
sector to provide their feedback on barriers they have encountered
within the EU single market using the reporting channels which are
to be established in Quarter 2 of this year so as to inform and
influence the various proposals put forward by the European
Commission over the next 24 months.
Originally published 27 March 2025
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
