Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Investment Funds Regulation, Supervision and Systemic Risk Monitoring

IMF Staff Country Reports, July 25, 2025

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Europe remains the second largest asset management market globally, while its market share is gradually declining.
The industry is mostly concentrated in a few member states (MS).
There is a significant amount of delegation of portfolio management services outside of the EU.
The majority of funds are held by institutional investors.
The share of funds held by investors outside of the EU continues to grow.

Market position:
- Europe: second largest asset management market globally.
- Trend: gradual decline in market share.
Industry structure:
- Concentration: mostly concentrated in a few member states (MS).
- Delegation: significant delegation of portfolio management services outside of the EU.
Investor base:
- Majority of funds held by institutional investors.
- Growing share of funds held by investors outside of the EU.
Risk and supervisory themes (as reflected by subjects/keywords in the source):
- Financial institutions; Financial regulation and supervision; Financial sector policy and analysis; Financial sector stability; Liquidity risk; Mutual funds; Stress testing; Systemic risk assessment.
- Keywords: alternative investment; data sharing framework; Europe; Financial sector stability; G. money market funds; Investment funds regulation; Liquidity risk; management directive; Mutual funds; Stress testing; Systemic Risk Monitoring activity.