Investment funds: business models, financial stability risks and regulation

This training programme aims to provide you with the essential analytical tools required for understanding the investment funds sector and its potential impact on the broader financial system. It is jointly organised by the European Securities Markets Authority (ESMA), the European Systemic Risk Board (ESRB), and the Florence School of Banking and Finance, providing academic rigour and up-to-date insights into the internal policy discussion.

The training programme will involve an in-depth exploration of the aspects of the EU investment fund sector through a series of lectures, group discussions, and practical exercises. You will acquire skills in the monitoring, mitigation and prevention of risks and vulnerabilities associated with investment funds, including from a financial stability perspective. As part of this, you will develop an understanding of the role of stress testing and associated stress testing methodologies. The programme will conclude with an interactive panel discussion of experienced experts and practitioners, who will share their insights.

Before you arrive in Florence, you will have access to a series of preparatory online lectures. These lectures will offer you a review of the main characteristics of investment funds, including their regulatory framework and supervision. This includes key features of Money Market Funds and an overview of sustainability considerations pertinent to investment funds. As part of this, you will have the opportunity to address any queries concerning the online lectures through a dedicated online question-and-answer session with experts from ESMA and the ESRB.