Summer has officially begun, and while one might expect a slowdown in regulatory activity, the European institutions remain as active as ever. In this quarterly update, we begin with the latest developments surrounding the Omnibus Simplification Package, explore the implications for investors, particularly in relation to sustainability reporting and conclude with a look at other notable regulatory updates.

In theory, the reform of the Dutch pension system from defined benefits to a defined contribution could be a shadow hanging over the longer end of European interest rate curves. But even there, we have known for numerous years that this reform was going to happen. Over those years, this reform has been used as an easy explanation for interest rate moves, especially when no other clear catalyst was available.

Global businesses offer natural hedges against currency swings. As euro-based investors, it’s natural to worry about exchange rates, especially when investing in dollar-denominated assets. A key concern we often hear is: What happens if the US dollar weakens? Will this erode returns from US equities?