ICMA AMIC statement on ESG transparency of Asset-Backed Securities
5 October 2021 ICMA AMIC has set up an ad hoc working group to discuss ESG transparency of Asset-Backed Securities. The working group has issued a statement laying down current challenges for this specific asset class and identifying key performance indicators for auto-loans and RMBS/CMBS which could then be embraced by market participants and/or regulators. ABS investors and originators who would like to join these conversations can contact the AMIC secretariat.
AMIC publishes discussion paper on ESG KPIs for Auto-loans/leases ABS
17 May 2021 In the context of growing demands from asset owners to evaluate their ESG footprint and greater regulatory scrutiny (such as SFDR), ICMA’s AMIC has set up an ad hoc working group to discuss ESG transparency of Asset-Backed Securities.
As a first step the working group (composed of buy-side firms) issued a statement laying down current challenges for this specific asset class and the buy-side. This subsequent discussion paper focuses on ESG KPIs for auto-loans/leases ABS. Next steps are to identify key performance indicators for two other sub asset classes (RMBS and CLOs). The working group will engage with other market participants and regulators to promote the usage of identified KPIs.
ICMA AMIC Review - March 2020
10 March 2020 ICMA’s Asset Management and Investors Council (AMIC) publishes its first Review of 2020, featuring articles on Sustainable Finance, Fund Liquidity and Primary Markets. This bi-annual publication highlights the role of the buy-side community within ICMA, reminds readers of AMIC’s objectives and priorities and outlines the activities of its working groups, alongside some enduring AMIC topics.
AMIC and EFAMA update their report on Managing Fund Liquidity Risk in Europe
22 January 2020 In 2019, AMIC and EFAMA decided to update their 2016 report “Managing Fund Liquidity Risk in Europe” following important policy and regulatory developments at EU and international levels. The purpose of this updated report is to outline the practical liquidity risk management processes which fund management companies put in place when setting up a fund and implement throughout the life of the fund. Also, the report describes the existing European and international regulatory frameworks in the area of fund liquidity risk management.
Download the press release
AMIC publishes discussion paper - review of the European Long-Term Investment Fund (ELTIF) Regulation
17 January 2020 In this discussion paper, the AMIC proposes concrete regulatory changes to facilitate the take-up of ELTIFs and significantly boost their contribution towards the financing of much needed longer-term investment.
The impact of the EU Benchmarks Regulation on EU users of third country non-critical benchmarks
10 January 2019 ICMA has today published an article on the impact of the EU Benchmarks Regulation (BMR) on the use in the EU of third country non-critical benchmarks. Any benchmark administrator based outside of the EU that provides benchmarks used in the EU will be subject to the third country regime requirements of the BMR and thus defined as a third country administrator. For benchmarks administered by a third country administrator to continue to be used in the EU after 1 January 2020, the third country administrator must comply with the requirements of the BMR. This article outlines how third country administrators may comply with the BMR, the challenges involved and the potential impact on EU users. The article does not address the issues involved in the use of critical benchmarks (for more information on ICMA’s work on critical benchmarks, please see our website).
AMIC publishes joint paper with EFAMA on investment fund liquidity stress tests
8 January 2019 The Asset Management and Investors Council (AMIC) and the European Fund and Asset Management Association (EFAMA) have published a joint report on Liquidity Stress Testing (LST) in investment funds. The report highlights the role of stress tests as an important risk management tool which allows the fund manager to assess the impact of different market stresses at the portfolio level. Moreover, it outlines the long-standing standard practices in the fund industry and the existing comprehensive requirements foreseen by European and national laws. The report also finds that existing rules governing stress testing, notably the UCITS Directive and AIFMD, are already at an advanced level, and provide robust and appropriate liquidity risk management processes.
Based on the analysis, and in view of ESMA’s ongoing work on Guidance for national regulators in respect to LST for investment funds, AMIC and EFAMA have pinpointed three key findings:
- A principles-based approach on the Liquidity Stress Testing governance and oversight is the optimal way forward;
- Proportionality is key for setting the right framework for LST, allowing the heterogeneous fund sector to tailor stress tests to the profile of the fund, their respective investors and the invested assets; and
- Given the existing robust EU regulatory framework, regional and national authorities should now focus on minimising operational impediments and facilitating asset managers’ discharge of their liquidity risk management duties, by ensuring that they can avail themselves of a broad range of liquidity management tools.
AMIC and EFAMA look forward to contributing further to this debate and assisting global regulators in their discussions.
ICMA AMIC Review - November 2019
27 November 2019 Ahead of the ICMA Asset Management and Investors Council (AMIC) Conference, held at BlackRock in London, AMIC published its annual AMIC Review - written by experts on current asset management industry issues and trends.
ICMA AMIC survey on FICC research unbundling
23 November 2018 ICMA’s Asset Management and Investors Council (AMIC) today issued the results of the second AMIC FICC Research Unbundling survey. The purpose of the survey is to help improve market clarity on this topic, identify remaining challenges, difficulties and outstanding issues in the implementation of the new MiFID II research rules and to establish progress compared to the first survey issued in 2017. This survey was aimed at buy-side firms and focused on FICC research only.
The results show that 79% of firms who responded pay for FICC Research from their P&L, up from 67% last year. On SME research, 43% of respondents noticed a decrease in availability and breadth of research, a trend which we expect will continue. Respondents’ approach to tackling the conflicting rules around FICC research globally seems to be equally split between unbundling research fees globally (35%) and segregating the EU and non-EU businesses (35%) - a stark change from last year when 64% of firms were planning to unbundle globally and only 7% were planning to segregate their businesses.
We hope that the our members and the market find the results helpful and informative. Please let us know if you have any feedback or would like to discuss these results.
AMIC publishes statement on fund delegation (April 2018)
ICMA’s Asset Management and Investors Council (AMIC) has today published a statement on fund delegation, underlining the importance of fund delegation to the asset management business model and the threat from recent legislative proposals.
Delegation is one of the key pillars supporting the EU’s cross-border investment model which has made UCITS, and increasingly AIFs, a global brand and a European success story. The European Commission’s proposal to review the European Supervisory Authorities gives the European Securities and Markets Authority the power to issue opinions on existing and future delegation arrangements. AMIC believes this proposal could threaten the success of the European asset management business.
AMIC believes it is important not to jeopardise well-functioning savings and investment markets that European asset managers serve through policy initiatives that may have good intentions but result in potentially serious damage to the industry.
ICMA AMIC survey on FICC research unbundling
8 November 2017 ICMA’s Asset Management and Investors Council (AMIC) today issued a survey it conducted on the intentions of investors with regard to the unbundling of FICC research as a result of the new rules coming from MiFID II. The survey was conducted in the last two weeks of October 2017 among AMIC members and is presented now in an anonymised format.
The results show that a clear majority of firms expect to be compliant by the MiFID II implementation deadline of 3 January 2018, but only half of respondents have received guidance from their national regulator with regard to the rules. 67% of firms intend to pay for research from P&L, only 4% intend to use a research payment account (RPA), but 17% had not decided.
A majority of respondents will increase spend on FICC research, but reduce the number of providers. Independent research providers (IRPs) are set to see more demand for their products and services.
Finally, a majority of firms (61%) said they plan to unbundle their research consumption globally, showing the growing international effect these European rules will have.
Joint AMIC/EFAMA Leverage Report (July 2017)
The International Capital Market Association’s (ICMA) Asset Management and Investors Council (AMIC) and the European Fund and Asset Management Association (EFAMA) have published today a report on leverage in investment funds. This paper analyses how leverage is used, how the European legislative framework regulates leverage, how international regulators are addressing this topic and how the risks related to leverage are addressed from a technical perspective.
The report also puts forward a number of recommendations to improve monitoring and analysis of leverage risk:
- The existing regulatory standards at the EU level can be the basis for developing, at global level, leverage and risk measurements through a matrix of different measures. This would allow a meaningful representation of a fund’s exposures, given that there is no single measure that can capture all the risks in nature, size and characteristics associated with a fund’s underlying assets and strategies;
- Further streamlining of global calculation methodologies for leverage and risk. Regulators should in that respect rely upon the existing EU regulatory regime;
- Adjustments and updates of these methods, particularly the 2010 CESR Guidelines, based on the best practices at EU level, could be envisaged if necessary; and
- Data sharing among regulators of already reported data is key and should be improved at both EU and global level. This would enable regulators to better assess the overall risks related to funds in Europe and globally.
The report is available here and the press release is available here.
Fund Liquidity Report (April 2016)
The International Capital Market Association’s (ICMA) Asset Management and Investors Council (AMIC) and the European Fund and Asset Management Association (EFAMA) have published today a report on the legislative requirements and market-based tools available to manage liquidity risk in investment funds in Europe. The report also offers some recommendations to further improve the general liquidity management environment.
To view the press release, click here.
To view the report, click here.
To view an executive summary, click here.
The Future of the Savings Industry Report (2013)
The report intends to show that the future of this industry is bright, and offers many opportunities to those who work in it. It will be significantly different from the present, that there are major changes afoot which will affect institutions and individuals alike, and that they – individually, severally as companies and collectively as an industry – need to adapt to survive.
ETF report (2011)
The AMIC published a report which a description of different types of ETFs and the current state of the ETF market, assessments of market trends in ETF development and usage, the future development of the ETF market and the value of the ETF 'brand'.
Managing Client Expectations Paper
AMIC issued a paper ‘Managing Client Expectations’ recognising and addressing the asset management industry’s reputational issues, many of which predate the current market crisis.
Money Market Funds Report (2008)
AMIC published a report on money market funds.