Stéphane Janin, head of global regulatory developments and public affairs at Axa Investment Managers shares his thoughts on how asset managers can effectively manage third-party risks while leveraging the latest compliance technologies.
Current regulatory developments affecting the investment fund industry should be considered from three perspectives.
First, we anticipate forthcoming implementations in traditional regulatory areas, such as the recently adopted EU UCITS and AIFM Directives’ review, which are set to be implemented from 2026. These changes will be further complemented by future distribution rules, including the Retail Investment Strategy (RIS) and the broader Savings and Investment Union (SIU) agenda to be set by the European Commission.
Second, we are witnessing broader technological and innovation trends that have the potential to enhance our services and benefit our clients as well as the industry as a whole. However, these trends may also embed risks, particularly regarding the regulatory approach to Artificial Intelligence, an area that is increasingly under scrutiny from policymakers and regulators. While we can anticipate the general direction of these trends, the specifics remain somewhat uncertain.
Third, alongside these two trends, recent geopolitical events at the global level could significantly impact our regulatory environment, though the outcomes remain largely unpredictable, as such decisions are made at the highest political levels. Notably, the agenda of the new US administration, which is partially known but not yet fully defined, may serve as a critical game-changer.
Fund managers should remain vigilant about its implications for regulatory and compliance matters, not just in the US but also in the EU and the UK. This agenda could affect (positively or negatively) various areas such as the development of Private Markets, ESG, Stewardship, digital asset management, systemic risk/NBFI, defence financing, and the powers of regulators, among other important topics.
