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AMAF: “So-called sustainable finance has become a priority

axis”

Monaco has already moved from off-shore to on-shore. Herv Ordioni, Chairman of the Mon gas ue
Association of Financial Activities AMAF , talks about what s next.

hen you look in the rear view mirror, how do response provided by the Principality with the
you analyse the development of the market creation of the sovereign cloud will also make
since the birth of the financial sector in it possible to respond to the problems of our
Monaco? customers in terms of the security of goods and
The Monégasque banking sector has now found people, to which we will now add data security.
its place. Remember that 30 years ago Monaco This possibility is a crucial issue for residents
was not mentioned anywhere in this respect, and, therefore, for local banking professionals.
except in Italy. Today, the Principality has become The development of the market is closely linked
a true international banking centre. It suffices to Monaco’s ability to maintain a very high level
to look at all the foreign communities that have of attractiveness. Monaco is a land of success:
gathered in Monaco over the past 15 years. To tomorrow the people who settle here will have a
comply with international standards and to give an breeding ground for success - they will no longer
ever-more powerful ethical signal, the Sovereign come just because they have already succeeded.
Prince wanted a paradigm shift in the banking
sector. We went from off-shore to on-shore, with As a traditional heavyweight in the economy,
a private banking activity aimed at a client le of the financial and insurance sector is, according
Monégasque residents. This transformation has to IMSEE, the second-largest contributor
been perfectly successful and it is confirmed by to Mon gas ue GDP and even the largest Hervé Ordioni
an increase in AUM (Assets Under Management contributor in the country in the third uarter
figures, envied by many. I’m not just talking about of 2020, with a turnover of €1.4 4 billion . Do demand and as an essential offer of dedicated
the level reached but about a lasting trend. The you think it will stay that way? products for our customers. The development of
rates of increase are remarkable and particularly es, very clearly. It is a service industry that ESG products is constantly growing. The AMAF
well-orientated if we are to believe the figures of consumes little space but needs IT and digital commissioned a survey of its members to take
the Banque de France for the first half of 2021. infrastructure, which corresponds perfectly to stock of the situation in this area.
what Monaco is implementing, in particular
How do you see the Mon gas ue banking and through its global digital transition programme, The Constitutional Reserve Fund FRC is
financial marketplace in 0 years time or in Extended Monaco. This is necessary in order setting an example. An audit of the FRC was
the coming decades to best serve our residents who expect from entrusted to an external consultant to define
As long as we know that our customers are us, authorities and local stakeholders, a world- areas for improvement. Instead of allocating a
entitled to expect a world-class quality of class quality of service. Another guideline is very percentage of the fund to virtuous investments,
service, the emphasis must continue to be clearly to put finance at the service of sustainable my ambition is to make it completely green and
on staff training. This is what we have done and socially responsible investment, which will to make traditional investments sustainable.
in recent years, for example with professional contribute to the credibility of both the banking Imagine a FRC of €2. billion, 80% or even
certification, which covers both improvements sector and the Principality on the international 100% managed in a sustainable manner.
in technical skills and in teaching methods in scene. You deploy capital without commonality with
terms of ethics and confidentiality. Additional a simple strategy of allocating % to this
training in compliance will soon be added Like Luxembourg, will Monaco make a mark in segment, declared Jean Castellini. Is this a
to this. Something else current is training in green finance Finance and Economy Minister, strong signal for the market?
Environmental, Social and Governance criteria Jean Castellini, hopes that the capital of the This is obviously a strong signal from the state
(ESG , as an additional training, since the AMAF is banking sector will be deployed as much as to our industry, which had already started to
considering a mandatory programme for bankers possible in sustainable investments and that prepare and deploy strategies in this direction.
and staff in contact with customers. ESG will Monaco will thus become a fully-fledged centre The Sovereign Prince’s vision in this area is a
be a pillar and this corresponds to a strategic for sustainable finance. very important accompanying factor. CSR ESG
development of the market. In addition, we So-called sustainable finance has become a investments are perfectly suited to Monaco. I am,
must constantly continue to bring ourselves into priority axis for the market, in particular under therefore, in line with this declaration, without
conformity with the best international standards, the impetus of the government which has set up forgetting that we must continue to structure
if possible by anticipating them. In terms of the a work unit in this area to support and structure the sector in legislative and digital matters in
assets more specific to the market, the strong this major trend, both in terms of growing order to continue to move in the right direction.

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