EAMA calls for EU law on best execution
EUROPE- Europe’s largest investment managers are pressing for EU regulations on a common approach to best execution in securities trading.
EAMA suggests a common approach to best execution would enhance the ability of European asset managers to provide cross border services to clients and invest on behalf of clients. It would also encourage the development of a single market in financial services.
However, the association warns that best execution is an extremely complex area from an asset manager’s perspective and an overly simplistic regulatory approach could be counterproductive, impeding the ability of asset managers to help their clients achieve their investment objectives.
Says Deutsche Bank’s Klaus Mössle, current president of EAMA: “the fundamental problem is that best execution is a concept with several dimensions and cannot easily be defined by “hard-and-fast” rules.”
The EAMA comprises the asset management associations of France, Germany, Italy, Spain and the UK and 30 of Europe’s major asset management firms.