Answer to Written Question: Influence of the asset management company BlackRock on the economy and society
(Source: European Parliament)
Answer given by Ms McGuinness
on behalf of the European Commission
The Union law in the area of financial services, and specifically asset management, is technology-neutral. Notably, EU asset management legislation does not prevent the use of algorithms in analysing market and economic conditions. In many areas, the use of algorithms and computers is a prevailing and established industry practice in the EU, the United States and globally. The EU has put in place sectoral legislation, including the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive, the Alternative Investment Fund Managers Directive (AIFMD) and the Money Market Funds Regulation, for the authorisation and effective oversight of investment management firms, including risk management and liquidity management procedures, organisational requirements and other tools. Supervision is carried out by national competent authorities, and coordinated in key areas by the European Securities and Markets Authority, to ensure the safety and integrity of the EU markets.
The EU’s oversight authorities, such as the European Securities and Markets Authority, the European Systemic Risk Board, the European Central Bank and national competent authorities within each Member State have the competence to supervise EU financial markets and financial infrastructures. They may take corrective actions where the market circumstances or the activities of supervised entities are deemed prejudicial to the interests of the investors in the relevant Alternative Investment Fund (AIF), financial stability or the integrity of markets.
Where the behaviour of any individual market player infringes EU law, supervisors can apply a range of available tools and sanctions.