1. BRUSSELS, 13 October 2005 Prague, 29 April 2008 VIth CIFA International Forum 1 Investor’s Freedom or Consumer’s Protection? Graziella Marras Senior Policy Advisor

2. 2 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 2 EFAMA-Land EFAMA is the representative association for the European investment management industry 24 COUNTRIES:   20 EU Members and   Liechtenstein   Norway   Switzerland   Turkey + 43 Corporate Members = Investment Management: EUR 16.5 trillion of which EUR 7.9 trillion through over 46 000 investment funds

3. 3 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 3 THE MiFID “REVOLUTION” AND ITS IMPACT ON INVESTMENT MANAGEMENT

4. 4 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 4 MiFID Impact on Asset Management and on Distribution of Financial Products MiFID regulates : Investment firms offering individual portfolio management services UCITS managers offering individual portfolio management services as additional activity Distributors of financial products including investment funds (BUT not the distribution of insurance products) MiFID introduced : Conduct of business rules covering: – conflicts of interest – inducements – best execution – suitability or appropriateness tests

5. 5 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 5 MiFID: What are the key issues for the Asset Management Industry?  Lack of consistency in implementation, resulting into higher costs  Lack of level playing field among financial products at the point of sale

6. 6 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 6 MiFID – Is there a silver lining? If rightly implemented, MiFID could be a significant step towards the realisation of a level playing field among investment products at the point of sale But Insurance products are not included Lack of transparency equivalent to funds’ for other products not addressed by MiFID

7. 7 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 7 For EFAMA, a Level Playing Field means comparable conditions for all competing investment and savings products at the point of sale In 2007 the Commission Green Paper on Retail Financial services finally acknowledged the need for a level playing Field, and the Call for Evidence on Substitute Products opened up the discussion on possible solutions. Beyond MiFID - A true Level Playing Field Among Competing Financial Products

8. 8 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 8 Substitute Products and Investor Protection High levels of disclosure currently available for funds but not for other products Investors should enjoy the same level of protection (disclosure, suitable advice) regardless of the financial wrapper MiFID is a great step forward for investor protection, but it is not sufficient

9. 9 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 9 The way forward STILL TO DO: Other EU Directives must be brought up to MiFID and UCITS standards, and Correct and harmonized implementation of MiFID must be ensured

10. 10 Stefan Bichsel, Public Hearing, 13 October 2005 Prague, 29 April 2008 10 INVESTORS, INDEPENDENT ADVISORS AND ASSET MANAGERS CAN ALL BENEFIT FROM A LEVEL PLAYING FIELD