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Impact Investing

IPE special report May 2018


Directive to benefit multinationals and largest asset managers - report

EUROPE – The EU pensions directive will greatly benefit multinationals, and open up opportunities to asset managers, says business information company, Datamonitor.

Says Datamonitor’s report multinationals will be the “winners from the directive”, thanks to the savings they will be able to realise through economies of scale. “According to EU statistics, a big multinational with a presence in 15 member countries could save around 40 million euros a year in administration costs, thanks to the new directive.” Consequently, Europe’s largest multinationals will be targeted by asset managers wishing to consolidate separate mandates from several companies into one centrally-run fund.

Those asset managers that will benefit most, says Datamonitor, are likely to be the largest and most prestigious, as reputation is an important reason when selecting a financial services provider.

The UK, the Netherlands and Ireland are reported to be in a strong position to take advantage of the directive. “The UK, having one of the most developed occupational pension pillars in Europe, and already operating according to the ‘prudent man principle’, which the new directive is based on, will see itself in the forefront of the new European pensions landscape, but its political and business leaders remain set against the single European tax system which would smooth the way for a full pensions common market,” says Datamonitor.

Elsewhere in Europe, Germany, Italy and Spain are expected to be fiercely targeted by asset management companies, who see them as having scope for growth and development.

The report is entitled: “The Pensions Common Market: Seizing the opportunities of the European Pensions Directive” and gives the verdict on the directive, pointing to whether it is likely to be a success, and what the opportunities are for asset managers and multinationals.

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