ECB Economists Examine Ireland and Luxembourg’s Role in Asset Management

Oversight of large asset managers in the EU is hindered by “supervisory blind spots” due to a fragmented national regulatory framework, according to ECB economists. They recommend that the European Securities and Markets Authority (Esma) establish “supervisory colleges” for major firms to promote a cohesive supervisory approach. While the European Fund and Asset Management Association opposes centralized supervision, the ECB suggests integrated oversight is necessary as the sector grows. This could mitigate risks and enhance cross-border financing in the EU’s capital markets.

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