Even if divergence is the regulatory watchword of 2018, in some areas of asset management, regulators seem to be in lockstep. Chief among these is the necessity of evolving regulation to facilitate the development of “fintech”.
Fintech is becoming a priority for many asset management firms. It has the potential to revolutionize their business models, bringing greater efficiency to financial transactions, for example, and helping firms and regulators meet the increasing demands for data.
In the main, regulators recognize the benefits of new technologies and are seeking to accommodate them. But they are also concerned about existing risks that could be heightened by the new forms of services.
They are also evolving regulation to become more fit-for-purpose in a digital age. “Big data”, robo-advice, crowdfunding and cryptocurrencies are all in the regulators' sights.