The expertise possessed by fpmi's members makes our position papers and
other materials sought-after sources of information on the issues of central
importance to the financial sector.
More and more transactions are intermediated through platforms that profit from network effects and that lead to the “tipping” of markets due to the “winner takes it all”-principle. Consumers make their choices for private consumption with the help of search engines and comparison platforms – if their decision has not yet been taken by digital assistants such as Amazon’s Alexa. The real suppliers, i.e. the companies providing the goods and services that the consumer ultimately seeks to have, lose access to the consumer. The competition of these suppliers, traditionally seen as a central driver of the market economy, is pushed to the periphery of the platform. The expert opinion at hand provides impulses for the current attempts in the European Union to create a regulatory framework for digital marketplaces.
> Read the full release Enforcing digital fairness!
The digitalisation has unleashed enormous potential, reduced transaction costs, enhanced consumer welfare and inspired a new entrepreneurial culture. New technologies and business models lead to a far-reaching modernisation of business.
Notwithstanding the dynamics of digitalisation, the economy is at a turning point: Its fundamental infrastructure is being transformed. Some platforms turn into gatekeepers of the market places of the digital economy. Due to network effects, economies of scale and superior access to data, the success of such platforms becomes self-reinforcing. In a platform economy competition is for the market – not on the market. Markets may be “tipped” and are organised and governed by one or two platforms only.
> Read the full release fpmi Opinion: Innovation, Variety & Fair Choice
On behalf of the fpmi the Centre for European Policy (cep) has examined the regulatory role of the European Supervisory Authorities (ESAs) and the EU Commission and produced an Analysis. Cep makes ten recommendations for improving control and scrutiny of the ESAs' activities at Level 2 and Level 3. These recommendations will help to ensure that the ESAs and the Commission comply with four essential principles when carrying out their regulatory work: adherence to the mandate, subsidiarity, proportionality and consistence.
> Read the full release European Supervisory Authorities - Room for improvement at Level 2 and Level 3
Report commissioned by the Munich Financial Center Initiative (FPMI)
This report deals with the significance of the Capital Markets Union (CMU) for corporate finance. It begins by evaluating the status quo with regard to capital market-oriented and bank-based corporate finance in Germany. The subject matter and background of the CMU are then illuminated and the CMU is subjected to a qualitative analysis. The last section of the assessment features recommendations for action derived from the analysis.
> Read the full release Financing the Real Economy in the Capital Markets Union Era - Recommendations for Policy Action
The Munich Financial Center Initiative (known by its German acronym of “fpmi”) supports the basic objective of the Commission, which is to hinder “undesirable speculation”. The Initiative wants to make its position very clear. This objective will not be attained by the proposed TFT.
This rejection is substantiated by the following points:
1. Encumbrance of private and corporate pension plans and of small-scale investors
2. Lessening of the attractiveness of investments in securities affected by the TFT through extraterritorial application
3. Impairment of the supply of credit to the business community
4. Increasing of the costs of capital borne by companies and thus impairing equity financing
5. Restricting the market makers’ function of assuring the market of having liquidity
> Read the full release Munich Financial Center Initiative rejects financial transaction tax
"“Solvency II” and “Basel III” could give rise to substantial risks to the financing of German companies, should the mutually reinforcing effects of these regulatory reforms in the insurance and banking sector not be taken into account.
1. Executive Summary
3. Solvency II and asset allocation in the insurance sector
4. Insurers and corporate financing
5. Reform of bank regulation and alterations in the refinancing of the banking sector
6. Ramifications upon corporate financing "
> Read the full release fpmi issues appraisal of Solvency II and Basel III
"The financial industry's central issues are the subject of hot discussion. fpmi has compiled thoughtful and expert positions on them.
Content of the paper:
1. Solvency II
2. Insurance guarantee systems
3. Green Paper on pensions
4. CRD IV / Basel III; cumulative ramifications of regulations currently being enacted
5. The regulation of financial markets: encumbrance for the real economy
6. Revamping of MiFID
7. Regulation of OTC derivatives (draft regulation)
8. Regulation of short selling"
> Read the full release fpmi's position on the occasion of their visit to Brussel on February 2nd, 2011
According to the fpmi, comprehensive provisions are needed in order to permanently stabilize international financial markets and to prevent a new financial crisis. The measures needed should include regulations of markets and financial corporations as well as comprise other aspects, such as consumer protection.
> Read the full release Better than more regulations
The German government is considering enacting regulations on the sales of credits by banks. These possible regulations would be partially counterproductive, as they would yield no net benefits to either the issuers or to the recipients of credits. This is the position (in German) taken by the associations of banks participating in the Munich Financial Center Initiative (mfci).
> Read the full release Sales of credits: the position taken by associations of banks
Germany’s government should not use its plans to incorporate the EU’s Markets in Financial Instruments Directive (MiFID) into Germany’s body of legislation as an occasion to enhance the powers enjoyed by Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin – Germany’s Agency for the Supervision of Financial Services) by curtailing the independence of operation accorded to the country’s securities.
> Read the full release Time allocated for implementation of MiFID is too short
The members of Munich Financial Center Initiative (fpmi) are in favor of a corporate tax reform of lasting impact. The reduction in nominal tax rates will however only achieve its goal should it lead to a substantially-large cut in the amount of taxation paid by corporations. This goal could be foiled by an accompanying and comprehensively-large broadening of the base of tax assessment.
> Read the full release Reform of corporate tax code: Good intentions shouldn’t be thwarted
Small and mid-sized enterprises employ approximately 75% of all workers and over 80% of apprentices in Bavaria. In addition, they are responsible for about 65% of the value added by Bavarian companies. The Bavarian state government has developed a four-pronged approach: improving the tax framework, conditions for participant and loan financing, and enhancing the overall economic environment.
> Read the full release fpmi members support small and medium-sized companies