Brexit-related uncertainty, effects of a low interest rate environment, risk of a sharp re-pricing of assets, structural changes in markets: the AMF has drawn up a mid-2016 current state assessment of the main risks to markets, retail investment, collective investment and the financing of the economy.
The AMF has published its tenth risk mapping in a very particular context: the United Kingdom's vote in favour of Brexit. This unparalleled situation of a country leaving the European Union heralds a period of uncertainty whose effects can already be felt on markets (higher volatility and risk premia). While the United Kingdom is today still a member of the European Union, future negotiations with the European Council over the terms of its withdrawal will be important for the activities of management companies and investment services providers. As such, the risk mapping focuses on the conditions and areas in which UK providers could potentially be eligible to continue to operate in Europe under a "third country" regime. Beyond that, Brexit raises questions over the clearing of euro-denominated contracts and market supervision.
In spite of renewed or stabilised growth in some regions, these uncertainties come on top of risks already identified by the AMF in its previous risk mappings, some of which appear more important in 2016:
At the same time, other risks identified in the past appear to be stabilising, or reducing, such as market fragmentation and difficulties experienced by companies – especially SMEs – in accessing market funding.
About the AMF
The AMF is an independent public authority responsible for ensuring that savings invested in financial products are protected, providing investors with adequate information and supervising the orderly operation of markets. Visit our website www.amf-france.org.
AMF Communication Directorate - Christèle Fradin - Tel : +33 (0)1 53 45 60 29 ou +33 (0)1 53 45 60 28