Financial Innovation Standing Committee

Anneli Tuominen

CHAIR:  Anneli Tuominen, Director General of the Finnish Finanassivallvonta

RAPPORTEUR: Patrick Armstrong

 

 

ESMA’s Financial Innovation Standing Committee (‘FISC’) coordinates the national supervisory authorities’ treatment and response to new or innovative financial activities and provides advice to ESMA to when to act.

In monitoring financial activities, FISC may advise ESMA to adopt guidelines and recommendations with the aim of promoting regulatory convergence, to issue alerts and warning or conduct any regulatory action needed to prevent financial innovation from causing customer detriment or threatening financial stability. As part of its activities, FISC also collects, analyzes and reports on investor trends. 

While aware of when localized financial innovation issues are best addressed by a national authority, when those issues are more widely shared, FISC may make proposals for the co-ordination of national responses. 

FISC also contributes to the Joint Committee of European Supervisory Authorities’ work on financial activities, financial innovation and consumer related issues (through the JC Sub-committee on Consumer Protection).

Any correspondence regarding the work of this Standing Committee should be sent to the Rapporteur.

 

Financial Innovation Day – 8 April 2014

On 8 April 2014, ESMA held its first Financial Innovation Day ‘Financial Innovation in the Wake of the Financial Crisis’. 
 
While innovation in finance has contributed to economic growth and brought significant benefits to investors and consumers, some financial innovation may undermine financial stability, market integrity and investor confidence.

“We can work to ensure that supervisors, policy makers and market participants are more aware of the types of innovations that may give rise to financial instability and which support growth and prosperity. We can provide for investors to have sufficient information to make informed decisions, suited to their circumstances and needs. Equally important, we believe that we need to bring a balanced approach, both protective and supportive, to the topic of financial innovation.”

-    Steven Maijoor, ESMA Chair

The Financial Innovation Day explored whether and what innovations emerged as a consequence or as a response to the crisis. In an environment of low rates and comparatively low volatility, how do market participants respond in terms of products or processes? How do they meet the needs of investors that have become more risk averse and crave low costs stable income flows with minimal downside risk? 

The Day was organized around four panels:
•    Alternative indices
•    Securitization 2.0
•    ETFs revisited
•    Big Data
 
Twenty speakers with members drawn from academia and the industry led the discussions during the four successive panels.

The keynote speaker of the event was Peter Tufano, Dean and Professor of Finance at University of Oxford’s Saïd Business School and a member of ESMA Financial Innovation Consultative Working Group. Steven Maijoor, ESMA’s Chair, and Anneli Tuominen, the Chair of Financial Innovation Standing Committee respectively delivered the introductory and closing remarks.

The event was targeted to the regulators of the 28 Member States, members of ESMA’s consultative working groups and other EU institutions.

Presentations

Members of the FISC consultative working group

Danielle Ballardie Head of Cash Markets and Deputy Head of Markets and Global Sales, Euronext
Guido Bichisao Director Institutional Strategy, European Investment Bank
Adrian Blundell-Wignall Special Advisor to the OECD Secretary General on Financial Markets, Deputy Director of the Directorate of Financial and Enterprise Affairs, OECD
Manuel Brieske Head of Product Development EMEA, State Street Global Advisors
Robert Brown Managing Director & Chair, Global Investment Committee, Towers Watson
Luis Correia da Silva Managing Director, Oxera
Laurent Deborde Head of investment management, Caisse des Depots
Frederic Ducoulombier Director, EDHEC Risk Institute
Rui Fernandes Head of Equity and Fund Linked Structuring and Product Development, EMEA, JPMorgan
Sean Flannery Director of Sustainable Investment Strategies, Meister Consulting Group
Alberto Gallo Head of European Macro Credit Research, Royal Bank of Scotland
Mick McAteer Director, The Financial Inclusion Centre
Manooj Mistry Head of ETPs and Institutional Passive, EMEA, Deutsche Asset & Wealth Management
Philippe Morel Senior Partner & Managing Director, BCG
Faith Reynolds "Member of the Financial Services Consumer Panel, Financial Conduct Authority"
Peter Tufano Peter Moores Dean, Saïd Business School, University of Oxford
Nicolas Veron Fellow, Peterson Institute for International Economics, Bruegel
William de Viljder Group Chief Economist, BNP Paribas
Christian Vollmuth

Managing Director, German Derivatives Association

Dan Waters Managing Director, ICI Global
Chris Woods Head of Policy and Governance, FTSE
Filippo Zorzoli     
Managing Director, Head of Rates sales and EMEA FICC and Equities structuring, Bank Of America Merrill Lynch