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Evolving Asset Management Regulation 2018

Evolving Asset Management Regulation 2018

Evolving Asset Management Regulation 2018

In last year's report we conjectured that the new political context within Europe and in the US, and developments in Asia and elsewhere, were likely to have a significant influence on regulatory policy and rule-making, during 2017 and beyond. Our insight has been proven correct.

After the financial crisis, regulators around the globe agreed common aims to enhance the integrity of markets and to reduce risks for governments and consumers. There was consensus on the overall regulatory agenda and priorities, leading to a convergence of worldwide regulatory standards. That consensus now appears to be breaking down: there is a parting of the ways.

Key pointers for CEOs

  • Factor into your business plans both the fragmenting and complex regulatory landscape and increasing supervisory scrutiny
  • Watch carefully the evolving debate on systemic risks as more sectors of the industry are brought into focus
  • Ensure your governance model, culture and conduct conform with new regulatory expressions of good practice, including product governance, disclosures and protection of client data
  • Review your decision-making and monitoring process around fee structures and fee rates. Can you evidence that the investor is being put front and centre in those decisions?
  • Consider how best to navigate an increasingly complex distribution landscape
  • Embrace technological developments but ensure full consideration of the attendant risks
  • Consider ESG factors and SRI, which are becoming a regulatory must for asset managers and institutional investors