Industry working group to explore new ways to make French fund distribution model even more efficient and responsive to international investor expectations
Paris, 10 July 2017 - Euroclear invites stakeholders to join a new industry working group to build an innovation roadmap to develop and enhance the French model for the distribution of funds to both domestic and foreign investors. The working group, chaired by independent management consultancy Ailancy, will bring together experts from key financial institutions servicing the fund industry.
Representatives from buy-side, sell-side, market infrastructure and industry associations will consider if and how new technology – such as blockchain – could bring value to the funds industry. In early 2018, the working group intends to publish a report that will set out concrete plans to further reinforce funds infrastructures.
Over the past years, Euroclear has contributed to the French funds industry’s efforts to increase international attractiveness, particularly through the work of the French [Routes and Opportunities] Garden (FROG) initiative.
Such collaboration has led to a number of new market initiatives (including the recent launch of Euronext Funds Service) and legislative changes that make the French funds distribution model more accessible for investors.
These industry efforts provide the working group with the experience and insights to map out and prioritise future opportunities, bringing additional transparency and efficiency to the funds marketplace.
Launching the initiative, Brigitte Daurelle, CEO of Euroclear ESES CSDs, said:
“Today marks another step for Euroclear in supporting the Place de Paris’ as a European fund centre. While France already offers a robust and efficient funds infrastructure, it must continue to look at innovative ways to make its funds industry even more competitive. This working group will do that and more: providing a roadmap for future development that we can put into action together.”
Thibaut de Lajudie, Partner at Ailancy, said:
“This working group will unite all the stakeholders of the value chain. It is a great opportunity for the Paris marketplace to speed-up the innovation trend and improve its competitiveness. We are very excited to have the opportunity to lead this group, mostly because we observe a great commitment and interest among participants when we drive innovation projects.”
Eric Pinon, President of the French Asset Management Association “AFG”, is delighted about this initiative:
“In the international competition, all improving processes aiming to increase the visibility and distribution of French investment funds abroad as well as to enhance customer knowledge are actively supported by the AFG. Moreover, a wider expansion of technological innovations will contribute to enhance the French asset management industry at the international level.”
Eric Dérobert, President of AFTI, commented:
“It’s a natural and logical step that AFTI and its members participate in this project that forms part of a continued service to the asset management industry. AFTI members have built up expertise that contributes to the efficiency and security of post-trade operations and, undoubtedly, their contribution will be significant to the success of this initiative.”
Didier Le Menestrel, Chairman and CEO of La Financière de l’Echiquier, Chairman of the FROG group said:
“All initiatives supporting the ambition of the French asset management industry and bringing its excellence across our borders is positive. With new technological solutions and the support of the regulatory authorities, our industry, strategically important for the financing of the economy, will have all the necessary attributes to intensify the distribution of French funds internationally.”
Note to editors
Euroclear group is the financial industry’s trusted provider of post trade services. At the core, the group provides settlement, safe-keeping and servicing of domestic and cross-border securities for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.
The Euroclear group includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 655 trillion in securities transactions in 2016, representing 196 million domestic and cross-border transactions. In 2016, the group held EUR 27.7 trillion in assets for clients.
For more information about Euroclear, please visit www.euroclear.com.
The French Asset Management Association (Association Française de la Gestion financière, AFG) is the professional organisation representing the French asset management industry. Asset management is about helping retail and professional investors to provide for their future and achieve other long-term goals.
The French asset management sector is the largest in continental Europe: 630 asset management companies employ directly and indirectly 85,000 people and invest on behalf of their clients up to 3,800 billion euros in bonds, shares and other assets. About 50 % of French asset managers commercialise their funds on a cross-border basis, and more than 30 % of the assets managed by our members are issued by corporates or states of the Euro zone (excluding France), which makes our industry a key source of funding for the European economy.
www.afg.asso.fr follow us on Twitter @AFG_France
The Association Française des Professionnels des Titres (AFTI), is the leading association representing post-trade businesses in France and Europe. AFTI has over 100 members covering a wide range of activities, including market infrastructures, custodians, account holders and depositaries, issuer services providers, as well as reporting and data providers. All together, they employ about 28,000 people in Europe of which 16,000 are in France. Members acting as financial intermediaries account for 26% of European custody activity, with €55.6 trillion in assets under custody and 25-30% of the European fund asset servicing sector (depositaries and fund administrators). In addition, in 2016, French market infrastructures settled 29 million instructions (CSD) and cleared 730 million transactions (CCP).
Ailancy is a business consulting company specialized in the financial industry. We assist wholesale banks and boutiques in shaping the future of their business and organization from strategic thinking to implementation. Our strong expertise of businesses, digital transformation and regulatory constraints make us your favorite partner to meet your business challenges.
For more information about Ailancy, please visit www.ailancy.com or follow us on Twitter or on Linkedin
The FROG group – French [Routes & Opportunities] Garden – was launched in 2016 on the initiative of the Autorité des marches financiers (AMF, French Markets Regulator) and of the Association Française de Gestion (AFG, French Asset Management Association). Chaired by Didier Le Menestrel, Chairman and CEO of La Financière de l’Echiquier and composed of experts of the financial industry, infrastructures and FinTechs, FROG aims to reinforce the French asset management competitivity across borders. A report, published in October 2016, issued seven concrete proposals destined to foster the competitivity of French funds on an international level.