Eurizon CEO on MIFID II and the future of asset management in Europe | European CEO

Eurizon CEO on MIFID II and the future of asset management in Europe | European CEO


European CEO: I’m with Tommaso Corcos, CEO
of Eurizon, to discuss the future of asset management in Europe. MiFID II comes into effect in January 2018; how is the asset management
industry going to change? Tommaso Corcos: There are certain changes
that are definitely important. One is product governance;
the second is further transparency; and the third point is the unbundling of research. Let me say that MiFID II runs the risk to
bring an effect on the profitability of asset management. And asset management companies
must answer to this challenge, becoming more prone to transform themselves. Not only creating
investment solutions; but giving a continuous, better service, to the distributors
of their own product. Another point that certainly is relevant for
MiFID II is the fact that the asset management company will be more responsible for the whole
life of the product. Also a better connection and stricter connection between producer and
distributors. And this is something that the asset management company must exploit to improve
the service that they give to the distributors and to the final customers. European CEO: So how have you been working
to prepare for this? To improve your transparency, your communication with your stakeholders? Tommaso Corcos: We’ve been working hard with
our distributors to prepare a template that will be given to the final customers in terms
of transparency. And also we’re working with them to improve the final content that will
be given to the retail investor, or to the institutional investor. And so this is something
that for us has been very relevant. European CEO: You’re exploring investment
opportunities in illiquid assets; what’s driving this? Tommaso Corcos: We are looking to have a more
important role in sustaining the development of the real economy. As you know, the banking system is transforming
rapidly. There are more issues coming from the regulatory environment. And I think that
there is a gap in terms of financing to the long-term projects mostly, that can be covered
by companies like the asset management industry. I’m thinking about infrastructure projects,
I’m thinking about real estate development. I’m thinking also about the possibility, mostly
in markets like the Italian ones that comes after years of financial crisis, to work on
NPL issues, on non-performing loans. So this is something that asset management
companies can exploit to improve their capabilities of offering more products, mostly to institutional
investors more than retail ones. European CEO: What kind of products will you
be offering? Tommaso Corcos: I’m thinking about real estate
debt products, about leverage loans, about non-performing loans products that mostly
in countries like Italy or Spain are the types of products from which you can get an interesting
yield – mostly in environment like this in which the yield on assets are still pretty
low. European CEO: What else does the future hold
for Eurizon? Tommaso Corcos: We should be more international. We are the leader in Italy, we are doing very
well in China where we manage almost €80bn. We set up another initiative in China, in
the province of Qingdao. We bought a company in London, and we are very happy on how things
are evolving. We set up branches in France and Germany. And so this is a clear tendency
to become and be more and more international. And this is certainly the direction for Eurizon. European CEO: Tommaso, thank you very much. Tommaso Corcos: Paul, thank you very much. If you started here, go back and watch the
first half of our interview with Tommaso, on Eurizon’s ESG strategy – so please subscribe,
or click the thumbnail to watch that. And for latest business, finance and strategic
insights transforming Europe, make sure your future includes some time at europeanceo.com

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