egal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
The European Commission recently adopted a comprehensive package of measures to reorient capital flows towards sustainable activities across the European Union, principally SFDR (Regulation (EU) 2019/2088) and Taxonomy (Regulation EU) 2020/852).
Under these rules, financial market participants will provide detailed information about how they tackle and reduce any possible negative impacts that their investments may have on the environment and society in general. Moreover, these new requirements will help to assess the sustainability performances of financial products. Compliance with sustainability-related disclosures will contribute to strengthening investor protection and reduce greenwashing. This will ultimately support the financial system’s transition towards a more sustainable economy.
The measures adopted by the European Commission include several Delegated Acts on fiduciary duties and investment advice, published in August 2021, aiming at ensuring that investment services providers, UCITS management companies and AIFs managers incorporate sustainability into their procedures and their investment advice to clients.
Economic conditions
Market size for asset and portfolio management services and biggest companies in this business area
France tops the list of European nations when it comes to Asset management. Indeed, 700 French portfolio management companies, whether they are generalists or tend to specialize in one activity (active management, quantitative management, absolute performance, alternative management, capital investment, and mortgage-based management), manage around € 4,800 billion.
This area of expertise is also a big employment player with 85,000 job opportunities.
Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area
The Brexit gave a big boost to French Asset managers. Known for their quality and their innovation, French actors are seen as very entrepreneurial in the field and account for two third of the asset managers in Europe. Many French corporations, around 153, are managing assets that reached the € 1 billion cap, which in itself is a great proof of the trustworthiness and the quality of the latter, with four of them making it to the top 20 globally.