Head of Global Regulatory Developments and Public Affairs, AXA Investment Managers (AXA IM); Co-Chairman, Asset Management and Investors Council (AMIC)
I was very honored to exchange views at the #Eurofi 2024 High Level Seminar in Budapest, within the Panel Session: "Financial Stability in Europe: risks from indebtedness, NBFI, private credit...". I stressed that, for AXA Investment Managers, tackling the topic of Non-Bank Financial Intermediaries (NBFIs) should start with clearly differentiating Regulated NBFIs from Non-Regulated NBFIs. Asset Managers complying with the UCITS and AIFM Directives are already known by regulators through initial licensing, ongoing monitoring, enforcement, and sanctions if needed. They are totally different from Non-Regulated NBFIs, which may generate the occurrence of Systemic Risk, as it was seen recently with the Archegos family office bankruptcy having led to enormous financial losses for Credit Suisse. Therefore, the priority for action might be: for policy-makers to regulate some types of currently Non Regulated NBFIs to make them better known by regulators (e.g. family offices like Archegos); for banking supervisors to enhance their monitoring of the due diligence carried out by banks when assessing their counterparty risks (in particular vis-à-vis Non-Regulated NBFIs); and for securities regulators to enhance their holistic market surveillance, which by nature includes Non-Regulated NBFIs among others. Thank you for the exchange of views with my fellow panelists from various public authorities, including: Gaston Gelos from the Bank for International Settlements – BIS; Francesco Mazzaferro from the European Systemic Risk Board; Sarah Pritchard from the Financial Conduct Authority; and David Kutasi MBA from the Magyar Nemzeti Bank. See my article on p. 279 of the Eurofi Magazine: https://lnkd.in/dVYRmFKN #CapitalMarketsUnion #nbfi #financialstability