The asset management industry is facing unprecedented uncertainty as it rushes to implement swathes of recent regulations during a period of geopolitical unrest, according to a report.
KPMG’s annual asset management regulatory report, published today, concludes that, while regulatory drivers differ around the globe, the degree to which asset managers pose a systemic risk to the financial system is a recurring theme.
The report’s author, Julie Patterson, KPMG’s head of regulatory change in asset management, said that reviews of post-financial crisis rules and political events are causing nervousness about the direction of travel.
This would, she said, likely lead to continued convergence of regulatory approach on some issues, but greater fragmentation on others.
“In the midst of this heavy regulatory agenda, perhaps the most difficult issue for firms to manage is uncertainty,” she said.
“The industry is being challenged about its business model and its commercial relationships, remuneration practices and management charges are all under scrutiny.
“Wherever they are based, asset management firms must prepare for fundamental changes to fund distribution and the provision of services across borders.”
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