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Steven Maijoor delivers key note speech at Better Finance 10th Anniversary Conference

03 April 2019

Steven Maijoor, the Chair of the European Securities and Markets Authority, has delivered the keynote speech at today's Better Finance 10th Anniversary Conference in Bucharest.

The speech focused on the costs and performance of retail investment products, drawing on ESMA's first annual costs and performance report on retail investment products.

​Key points in the speech were:

“In the case of retail investment funds, costs are fairly constant and not as variable as gross returns. Hence, investors take an extra hit in case of overall lower gross returns.

and

“The new ESMA Q&As adopt a broad definition of ‘benchmark referencing’ UCITS funds. The obligation for a wider range of funds to show past performance of the benchmark should allow investors to better evaluate investment choices of active funds against passive funds, and reduce the possibilities of adopting closet indexing strategies.”