2023-11-23 05:00:40
The European Union wants to develop the participation of its citizens in capital markets. And this requires better control of fees and other commissions. A text called RIS (for Retail Investment Strategy, the “strategy for retail investors”) is being finalized, to better regulate the governance and sale of savings products. Above all, it introduces the concept of « value for money » – good value for money.
In the world of investments, this implies a level of fees consistent with the performance delivered by the product. If, in the European text, the form taken by the evaluation of this value for money generates a lot of concern among French professionals, the Prudential Control and Resolution Authority has anticipated its application in the field of life insurance.
The banking and insurance regulator has reached an agreement with the federation France Insurers to provide “increased transparency in life insurance and better correlation between fees and performance of units of account [les supports de l’assurance-vie qui ne sont pas garantis, contrairement aux fonds en euros] ».
Concretely, all companies must, by the end of 2023, then every year, carry out a review of their list of units of account. They must compare the fees charged for the latter to a reference level: for example, the average of those of supports with a comparable level of risk.
10% of media
Products with costs 33% higher than this reference level will need to be studied closely by the insurer, who will have to evaluate their performance net of costs over a long period, in order to judge whether these products can continue to be marketed. Certain elements might lead him to wish to keep an expensive product – the scarcity of the strategy, a reinforced sustainable approach, etc.
Negotiations with management companies would make it possible to reduce levies on funds deemed too expensive. “Otherwise, we will close the funds to new entries, or even delist them”indicates Dominique Collot, marketing and communications director of the insurer Suravenir.
According to the consulting firm Indefi, Quoted by The echoes, 10% of units of account would be affected by dereferencing. The insurers surveyed consider this figure consistent, while recalling that the exercise is still in progress.
“No quantitative objective has been set”underlines Franck Le Vallois, general director of France Assureurs. “The objective of the approach is to strengthen the referencing system for units of account. Then, each insurance company will carry out an analysis of the relevance to maintain for subscription of each unit of account identified during the review, and will decide whether it maintains their marketing.he explains.
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